just a rant

knightstyle

Don't forget that although endowments were very likely to pay the predicted amount the housing market was very volatile.
Our endowment taken out around 1980 paid out slightly more than first predictions 25 years later BUT we lost £25k on the house we bought in 1988 in 12 months.
Plus mortgage interest rates were crippling at around 15%
So when interest rates are low the endowment will not increase much if at all and you need to increase your savings or mortgage payments to make up for it.
But, of course no-one does, we just buy a bigger TV or newer mobile/tablet even though our old one still works!
Don't look back and think it was easy, it wasn't, and we still have a small mortgage now, perhaps due to our loss in 1988. But I am not complaining, we are very happy with our lot.

Generali

colin13 wrote: »

its a free site ,and if i feel i want to rant on something ,to do with eeconmy ,,i will,,in the correct place

and if,, i want to,,, reply,, then i will,,,,,

ukcarper

Generali wrote: »

People just heard, "Free lunches, get 'em while they're hot" and didn't look beyond that.

An endowment mortgage is a pretty simple product and the risks are self-evident.

So is broadband speed but plenty of people complain about that.

mystic_trev

I can'''t understand,,,, why you'''''re soooo p,,,,ssed off,,,, :exclamati:exclamati:exclamati:exclamati:shocked::shocked::exclamati:exclamati

System

This,,, is the,,,, most bonk,,,,ers posting,, style I have ,,,,, ever,, seen,,

ging84

sounds to me like someone bought an endowment mortgage quite some time ago, then never shopped around for a re-mortgage

You may or may not have been mis-sold the original mortgage, there is a strong chance if it was if it was sold to you about 25-30 years ago, but to only be discovering that now is quite surprising. Did you miss the 5 or so years of relentless advertising from solicitors offering you compensation for mis sold endowment mortgages about 15-20 years ago?

Generali

ging84 wrote: »

sounds to me like someone bought an endowment mortgage quite some time ago, then never shopped around for a re-mortgage

You may or may not have been mis-sold the original mortgage, there is a strong chance if it was if it was sold to you about 25-30 years ago, but to only be discovering that now is quite surprising. Did you miss the 5 or so years of relentless advertising from solicitors offering you compensation for mis sold endowment mortgages about 15-20 years ago?

And countless letters telling you whether you're red, amber or green WRT paying off the mortgage.

Of course the massive cut in interest rates has freed up thousands to put away on the mortgage or just fritter away. I suspect I know which path the OP took.

LydiaJ

knightstyle wrote: »

... when interest rates are low the endowment will not increase much if at all and you need to increase your savings or mortgage payments to make up for it.
But, of course no-one does, we just buy a bigger TV or newer mobile/tablet even though our old one still works!

Generali wrote: »

Of course the massive cut in interest rates has freed up thousands to put away on the mortgage or just fritter away. I suspect I know which path the OP took.

Indeed Generali. knightstyle's assertion that no-one takes this prudent path is an exaggeration. There's a whole board of them on this forum, over on MFW, together with countless others whose focus is on the most effective way to invest in the current low interest rate climate, rather than how many consumer goods they can accumulate in the short term.

StevieJ

I thought the banks paid out a fortune in compensation to mortgage endowment policy holders?

purch

There seems to be some confusion between Endowments, and what were marketed as Low Cost Endowments from the mid 1980's onwards.