Self-build Mortgage - Endowment Claim

N2000

Hi

I have a miss-selling claim going through at the moment.

I was sold an endowment to run along aside a pre-exisiting endowment. The second endowment was to cover a self-build home, and related to a "self-build" mortgage, i.e one in which funds are released at set points during the construction process.

Was it ethical to sell an endowment policy to cover a self-build?

We didnt draw the final amount until eleven months after the policy started.

Even then, we drew less than the endowment had been set up for.

Does anyone have experience of self-builds and endowment claims?

somemortgageanswers

I cant think why selling you an endowment was unethical - provided that the amount of cover was constantly reviewed. My understanding of self builds is that money is released in stages - best advice would be to set up new endowments as stages were released, but this would have been expensive, from your note I assume you took a policy out for the whole amount from day 1. Again no problem as long as you were made aware that you may have too much / not enough cover. I assume an on the ball adviser would have / should have reviewed this. :eek:

The adviser would of / should of supplied you with a "reasons why" letter that backs up his/her recommendations for the product - I would of thought the adviser to write an explaination there.

Depending on the company/policy you took out you may have been able to reduce the sum assured after the eleven months period - did you make your adviser aware?

Endowments of course were advised based on a customers attitude to risk - if you wanted no risk you should not have been sold an endowment plan regardless if the purchase was a self build or not.

Finally, what action have you taken to redress your complaint - there are plenty of threads on this site that will inform you how to make a complaint.

N2000

Thanks.....but, the amount of cover was not constantly reviewed.

The money was released in stages, but the endowment was set up for the full amount, a month ahead of drawing any of the cash, and the last amount was drawn a year later.

The fact-find understated my earnings, but of course we signed it too.

The reason why letter omits to say why the product is so good for a self build.

I didnt make the adviser aware, I didnt even know I needed to, it was my first build, the experienced party was the Building Society/Endowment Firm.

My attitude to risk was a 2 on 1 to 5. So low risk.

What action have I taken to redress my complaint - it is up to the final appeal at the FOS.