mortgage endowment issue

paulomondim

Hello all
I hope someone can advice or put me in the right direction.
I bought a house in 1990 on 25 years interest re-payment and endowment.
Until now I have been paying for my mortgage monthly on the asumption that what I was paying for interest and also contribution towards my endowment.
I have been told by mortgage lender that after the 1st year into my mortgage, my endowment payment stopped without my knowledge and they have no records.
as to my surprise I'm now with a dilemma as i assume my house will be paid this year but instead according to the lender I still own the full price of my house.

I was wondering what are my options and do I have a case against the lender or is this one of those cases where I'm to be responsible for the situation I am in?

Thank you.

dunstonh

I was wondering what are my options and do I have a case against the lender or is this one of those cases where I'm to be responsible for the situation I am in?

Anything is possible but looking at your situation and what you have said, you would have the following issues with any complaint you made:

1 - You paid an endowment for a year before it ceased. So, you would have seen a monthly payment go out for a fairly large amount to the endowment provider for about 12 months. This would contradict your assumption that you though the one payment covered both.

2 - When you took the policy out, you would have had policy documents and welcome letters etc. When the policy stopped being paid, there would have been multiple letters sent telling you that the policy will be stopped due to non payment and then more letters when it had been stopped. They dont just stop without notice.

3 - when the monthly payment stopped to the insurer, how did you not notice such a large amount no longer being paid?

4 - In 25 years, you have never queried why you havent got an endowment statement or if your endowment was on track for shortfall/surplus despite all the media coverage about endowments in that period.

There is a FOS guide to this from 2001: http://www.financial-ombudsman.org.uk/publications/ombudsman-news/9/sept-missing-policies.htm

paulomondim

Thank you for your help dunstonh.

I guest my options are to find someone expert like a solicitor, on this sort of cases.
1) I assume the amount was taken out toguether with the monthly morgage.
2) No once did i got a letter from the lender regarding payment issues.
3) Looking at my original contract the monthly amount for the endowment was £75.00 a month so it was ease to assume it was part of the mortgage.
4) Im also responsable for not queried my endowment until now.

Im not after a compensation or for the Lender to take full responsibility but i think they have some responsibility.
Im just after a solution or options as i don't want to lose my house but im also 60 and no one its going to give me a loan for £50.000 to pay for my house.

Thanks again for you help.

Froggitt

IMHO seriously start looking now to downsize, as there should be significant equity in the house, and pay off the mortgage when you move.

TheBlueHorse

how much was the original mortgage for and how much is the house worth today?

paulomondim

Thank you to every one for your help.
I think i know what i need to do.

Thank you again......