endowment misold?

traceydc49

Hi everyone if anyone has advice on this I'll be very grateful! We arranged our mortgage in1986, with the Halifax, we were advised by a financial adviser to take out an endowment with royal sun alliance, however our endowment, like so many other people, has a short fall & won't reach amount to repay original loan. We are very lucky in the respect our mortgage is £32,000, pretty low considering how much mortgages are costing at moment. I did contact royal sun alliance a few years ago, but they told me there is no claim if endowment was bought pre 1989? Also the company is now called phoenix? I know I sound thick but we've just paid premiums, the original financial advisor convinced it was the way to go,at 19 & first house we didn't really have a clue what we were doing, advisor was from Guardian financial services & phoenix took over policy in 1999

dunstonh

I did contact royal sun alliance a few years ago, but they told me there is no claim if endowment was bought pre 1989?

Almost. Financial services regulation started in April 1988. So, this is pre-regulation.

The banks and building societies will consider complaints on cases sold by them prior to that on a voluntary basis. However, Halifax did not sell this policy to you. it would have been a local accountant, solicitor or broker (what would now be an IFA). None of those consider pre-regulation complaints. So, Royal Sun Alliance are correct.

I know I sound thick but we've just paid premiums, the original financial advisor convinced it was the way to go,at 19 & first house we didn't really have a clue what we were doing, advisor was from Guardian financial services & phoenix took over policy in 1999

In 1986 it was still considered a good thing. If this site had existed back then it would have had an endowment best buy section and Which used to recommend endowments too. No-one could have predicted what happened back in 1986. on the upside, your monthly payments would likely have been lower than a repayment mortgage (usually were with endowments) and if you take a typical £20pm difference over 25 years that equates to £6000. Plus, the changes in the economy which led to endowments failing have made virtually everyone better off than had the old economy continued. So, its not all doom and gloom.

traceydc49

Thanks for reply, shortfall not too bad, we can just about manage it, hopeful we can reduce interest by over payments, thank you again!