Underpayment on Endowment

deborahC

My endowment is due to finish in July 2015. Sold in 1990, I chose this over a repayment as broker told me it would pay over the £27,000. After receiving my first warning letter I called him in 2004, he told me to ignore it that I was safe as my policy was pre 1999???. He died in 2005 and my policy ran on, until I wrote to ombudsman last year, too late to claim apparently. I called L&G last week and they told me it would pay out approx. £21500, which leaves me short on my mortgage by £5500, which I don't have. Do I transfer this amount to my other part repayment mortgage?? Should I get a lawyer involved? or is is too late for any type of compensation. I have Mortgage protection with L&G for my repayment part and 2 life insurances with L&G but do not wish to deal with them anymore.

dunstonh

I called L&G last week and they told me it would pay out approx. £21500, which leaves me short on my mortgage by £5500

Ironically, that means you have probably been better off with the endowment than repayment basis plus life cover. Endowment mortgages were around £20pm cheaper than repayment mortgages. It was a very common reason why people went with them. 25 years of £20pm is £6k. So, broadly similar.

Do I transfer this amount to my other part repayment mortgage??

Up to you.

should I get a lawyer involved?

A solicitor is not authorised to give you financial advice and you dont need a solicitor to write a cheque.

or is is too late for any type of compensation.

You have already been told it was too late.

I have Mortgage protection with L&G for my repayment part and 2 life insurances with L&G but do not wish to deal with them anymore.

You are going to have to deal with them in respect of the maturity. Or pay an IFA to do the maturity paperwork with you.

scott_lithgows

I,ve also got a shortfall this month,I am paying the 20k into the mortgage then overpaying the mortgage by the amount I was paying into the endowment plus how much the mortgage comes down by in March.