Endowment shortfalls - what can you do?

MDUK

There was an article in the sun this week about endowment mis-selling and what some people have done about it.

One of the items was about a guy who followed the suggested proceure and templates for letters from Which and got a cheque for £16,000.

This made me look at my endowment projections (which i have not paid a lot of attention to) and in the worst case projection I would be over £24,000 short.

I decided to try and do somethign about it and I have found the link for Which? if anyone else wants it

"Which? research shows that up to five million people may have been mis-sold an endowment mortgage.
Endowments were mis-sold because they were unsuitable for paying back a mortgage. This website explains what mis-selling is, helps you work out if you have any grounds for complaint and even helps write the letter of complaint for you.

Making a complaint is important - there is limited time for people to complain but you could win thousands of pounds in compensation"

Endowment action

Complaints letter

EdInvestor

The Which site is indeed a good place to start if you are making a complaint.

But 16k is a very large compensation amount, that must have been a very big mortgage.Most people get less than 5k.

The compensation is not designed to cover the shortfall.It is designed to put you in the position you'd be in if you had a repayment mortgage.So if your complaint succeeds, you are supposed to surrender the endowment, and pay that money, plus the compo money towards reducing the mortgage amount, and then pay the endowment premiums into the mortgage alongside the mortgage payment.

If you do that, you should have paid off the mortgage at the time it's due to end.