Huge shortfall in endowment

Tiger_greeneyes

I've been paying my endowment policy since 1993. It was to cover my £30,000 mortgage and I've been paying the premiums ever since on that basis.

I found out today that I'm now going to be £12,000 short.

Do I have any options at all or is that just how it is? £18,000 instead of £30,000 even though I've paid this every month for 24 years now - I'm beyond worried.

molerat

Have you not been receiving the shortfall warnings all these years ?

dunstonh

I found out today that I'm now going to be £12,000 short.

Endowments dont just suddenly go short like that. Most endowments started going short in 2001. Why have you only now found out and not 15 years ago?

Do I have any options at all or is that just how it is?

Ask your lender to switch £12k of your mortgage to repayment basis or overpay the mortgage by an appropriate amount.

Tiger_greeneyes

molerat wrote: »

Have you not been receiving the shortfall warnings all these years ?

No, I didn't have any for the first ten years so I wasn't expecting any. Anyway, I moved in 2008, sent them my new address and still heard nothing. I called them today and they'd entered my address wrong on their system. They put in a postcode that was nothing like the one I gave them.

Tiger_greeneyes

dunstonh wrote: »

Endowments dont just suddenly go short like that. Most endowments started going short in 2001. Why have you only now found out and not 15 years ago?



Ask your lender to switch £12k of your mortgage to repayment basis or overpay the mortgage by an appropriate amount.

Like I said above, the endowment company had input the wrong address on their computer when I moved and gave them my new address.

I won't get another mortgage as I can't work anymore due to ill health.

dunstonh

I won't get another mortgage as I can't work anymore due to ill health.

You dont need a new mortgage. You ask your existing lender to switch £12k to repayment basis. Or you over pay the mortgage by the equivalent amount.

silvercar

dunstonh wrote: »

You dont need a new mortgage. You ask your existing lender to switch £12k to repayment basis. Or you over pay the mortgage by the equivalent amount.

25 year endowments were the most common. With only one year to go, that £12k shortfall will mean an extra £1k a month for the final year.

It may be that this isn't affordable and OP would need to look to extend the term.

TrickyDicky101

Hi Tiger_greeneyes

Your signature states that you received mis-sold endowment compensation - so when did you receive this?

Surely at this point you were aware that there were potential problems with future repayment of your mortgage balance?

lovinituk

TrickyDicky101 wrote: »

Hi Tiger_greeneyes

Your signature states that you received mis-sold endowment compensation - so when did you receive this?

Surely at this point you were aware that there were potential problems with future repayment of your mortgage balance?

It also says they were mortgage free in 2009 so must have borrowed again.

Tiger_greeneyes

TrickyDicky101 wrote: »

Hi Tiger_greeneyes

Your signature states that you received mis-sold endowment compensation - so when did you receive this?

Surely at this point you were aware that there were potential problems with future repayment of your mortgage balance?

I really don't remember as it was ten years ago now. I vaguely recall them saying that that figure would take care of the shortfall. Sorry I can't be more specific but I've got a brain condition.

Tiger_greeneyes

lovinituk wrote: »

It also says they were mortgage free in 2009 so must have borrowed again.

That signature is 8 years out of date I'm afraid, since I've not been able to work I've accrued more debts...