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Endowment selling

Can anyone give advice? I have a £40'000 mortgage, with endowment designed to pay said amount, paying £101.77 each month since Aug 98. I have claimed compensation through a claims firm for mis-selling, their fee being 20% of claim value. I have been offered £10'221 from insurance firm, but this involves surendering policy, would I be better selling this, and putting the proceeds to my mortgage, then change the remainder to a repayment?
Anyone's thoughts on this would be appreciated.:confused:

Comments

  • dunstonh
    dunstonh Posts: 120,428 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    You complained about the endowment being unsuitable and that you wouldnt have taken it had you known. So, I think its fairly clear that keeping it isnt the right option for you as you wouldnt have complained had it been suitable.

    In which case you should surrender and switch to repayment.

    Check the with the claims firm whether their 20% is against the redress payment only or the surrender value as well. The £10,221 could be made up mostly of the surrender value of the endowment and the redress payment may not be that big.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • I think your right, the redress on this is approx £750.00, and the claim company wiil deduct their fee from this. The fact is, what L&G, (my endowment provider), are offering me is approx £300.00 less than what I've paid in to this from start off, & I'll still have to pay £150.00 to the claim company. So I'm wondering would it be better to sell this policy, & if so, can anyone recommend a good company to deal with?
    Thanks.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    If it's conventional with profits these people may be interested:

    https://www.apmm.org
    Trying to keep it simple...;)
This discussion has been closed.
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