Endowment complaint upheld given options

weaver

I have filled in a questionaire from Mortgage company re our mis sold endowment ploicy

Received a reply that says- we are upholding your complaint in part relating to this policy.

Took out policy in Feb 1985 for £20,000. used same bank until 2003 when swapped to new company.Have been given cash back of £500 pounds and swopped it to a tracker mortgage in 2001, which finished in 2003 when we swopped mortgage lenders

We have never altered the endowment side of the policy, always paid premiums and never been in arrears. Not paid off anything either.
The company has given me 2 options on how they will calculate if any financial loss has occurred.

Option 1 - calculate using their Standard variable rates over the term of the mortgage. with no allowance for changes to mortgage such as fixed rates,discounted or capped rates,mortgage arrears/advances or part repayments will be made.

Option 2 - calculate the difference based on specific mortgage history. we will require details relating to all your mortgage accounts since the start date of the policy. we need to know Name & address of lender,Mortgage number,start & end date

Which option is the best to pick - I have been given no % rates,but am expected to choose an option whereby they make the calculations. Im confused.

As ive already been given the cheap tracker option,had cash back and currently using a cheaper mortgage lender am I better to choose Option 1.

Please help - dont even know if I will get any compensation.

pjala

I have been thinking about this as well, and back of the a fag packet calculations say the lower the interest rate you have had over the period of the mortgage the more you would have paid off with a repayment mortgage.
Check the mortgage calculator link below to try a few figures - it can mean a couple of thousand difference!

http://jeacle.ie/mortgage/uk/

The choice is laziness, ie take the SVR - or go over all your old papers.
P

NB On the last part, the Ombudsman has told me that they will calculate compensation up to the point when you get a repayment mortgage - so it would be based on what a repayment mortgage would have payed off on your endowment up to 2001 when you changed to a tracker

weaver

Thanks - thats a really handy calculator.

I appreciate your input.

Im gonna go with option 1 as I only swopped mortgages about 2 years ago, and I honestly cant see much difference, especially as Ive had a cash back and lower rates.

Thanks again for your help, gotta tag the calculator site, it brings home just how much you actually will pay out.