Mortgage Endowment Misselling

sweenclan

Hi,

I've just recieved a letter from the Norwich Union regarding the mis-selling of my Mortgage endowment, while my complaint was upheld, they say that i'm entitled to no financial redress under the calculations they use as well FSA. This is what i dont understand surley if someone mis-sold you a financial product that in itself should entiltle you to some computation, or a least any commission or charges should be paid back.

If i was to go down this route of trying to get back the commission or charges would i stand any chance of success, could i take the Nowich Union to the small claims court.

Has any find themself in this postion. :mad:

EdInvestor

If you make a successful misselling complaint you will only get redress money - it's not compensation - if you've made a loss.

The loss calculations are made using a formula dictated by the regulator, the same for everyone.

There are quite a few cases like yours, mainly because the payments made on the endowment mortgage are lower than those made on the repayment mortgage. That was often one of the attractions - endowment mortgages were cheaper.

dunstonh

NU are one of the better providers. At this point you are financially better off compared to a repayment mortgage. So, why do you think NU should pay you compensation when you are financially better off?

If i was to go down this route of trying to get back the commission or charges would i stand any chance of success, could i take the Nowich Union to the small claims court.

You dont pay the commission so you cant get that back. The current value is after charges and you are better off so why should you claim them back.

How do you think a judge would view your case? My lud, I wish to claim against NU for making me financially better off.

sweenclan

The reason why i asked these qestions was because i was actually sold a mortgage endowment policy before i had a mortgage, i was ony 21 at the time i feel was taken advantgage off, all i was doing was looking to save regular amount of money each month. I believe maybe wrongly that i was sold a mortgage endowment because of the commission earned on them.

dunstonh

pre-sale endowments were thought of as a good idea at the time but with hindsight, the holes began to appear in that decision.

The idea was that you bought an endowment for 25 years early and you paid the £40-£60pm for that. When you did get the mortgage, you had already paid a number of years into the endowment meaning your mortgage term would be less. That sounds great but you could also have put the £40-£60 pm into a savings account to increase your deposit and thats why these complaints are usually upheld.

So, in your case, they have upheld the complaint but when they have calculated the financial position, they have found you have made more by having the endowment than by not. So, that is why no redress is payable.

sweenclan

Thank you for your time and help.