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Huge shortfall in endowment
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The point is that your mortgage situation has changed more than once but your endowment has not by the sounds of it.Tiger_greeneyes wrote: »That signature is 8 years out of date I'm afraid, since I've not been able to work I've accrued more debts...
When you paid your mortgage off 8 years ago, your endowment became an additional investment to you with no mortgage to pay off.
If you then took another mortgage but made no changes to the endowment, you can't expect it cover the full amount owed on the new mortgage - there was no longer any connection.
There was effectively a disconnect between the mortgage and endowment the moment you paid your mortgage off.0 -
If you then took another mortgage but made no changes to the endowment, you can't expect it cover the full amount owed on the new mortgage - there was no longer any connection.
There was effectively a disconnect between the mortgage and endowment the moment you paid your mortgage off.
Disconnect or not, the endowment would pay out the same amount.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
The point is the compensation paid would have put the OP back in the position they would have been in had they had a repayment mortgage and not an interest-only/endowment combination. Hence, any subsequent under-performance of the endowment is down to their (the OP's) investment choices.
Sadly for the OP they need to repay the shortfall amount they have on their new mortgage.0 -
Yes I realise that but the OP moved the goal posts when their mortgage situation changed - twice by the sounds of it. The endowment has no connection to the current mortgage other than it won't be enough to cover it.Disconnect or not, the endowment would pay out the same amount.
They should have reviewed the endowment at the point the new borrowing was taken out.0 -
The new mortgage was lower than the endowment level so I didn't need to top up the endowment.
It seems like I have no comeback at all, even though the endowment company updated my address wrongly ten years ago when I changed it with them.0 -
Tiger_greeneyes wrote: »It seems like I have no comeback at all, even though the endowment company updated my address wrongly ten years ago when I changed it with them.
I doubt that an administrative error such as this would be compensated to the tune of £12,000.:heartpuls Mrs Marleyboy :heartpuls
MSE: many of the benefits of a helpful family, without disadvantages like having to compete for the tv remote
Proud Parents to an Aut-some son 0 -
When did you take out the new mortgage and how much was it for?Tiger_greeneyes wrote: »The new mortgage was lower than the endowment level so I didn't need to top up the endowment.0 -
Tiger_greeneyes wrote: »The new mortgage was lower than the endowment level so I didn't need to top up the endowment.
It seems like I have no comeback at all, even though the endowment company updated my address wrongly ten years ago when I changed it with them.
If you could argue that the clock for a compensation complaint should be reset, you only get the difference between what you actually paid and what you would have paid had you taken a repayment mortgage (including allowing for the lower outstanding mortgage.) You don't get an automatic payment of the shortfall on what would have been your mortgage. Given that endowment mortgages usually were cheaper, a lot of people didn't find themselves entitled to compensation.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Don't forget that redress has already been paid. You dont get a second bite of the cherry.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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Fair enough, thanks everyone for your advice in this. I'll just have to suck it up. It's only money at the end of the day!0
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