Mis sold

Lespat

Is it to late to claim a mis sold endowment. We only just realised we were sold one and the 4 years later our mortgage was calculated to a repayment

ACG

You changed your mortgage to repayment 4 years after you took out an endowment?

Unless the endowment advisor was psychic, how would they know you were going to change to repayment?

Lespat

Thanks for replying, the story is we were 20 years old at the time we were told to take a low cost/low start endowment mortgage, we were told that the endowment would cover the cost of the mortgage, 52k plus give us a lump sum of approx 20-30k. This was in 1990, after 4 years we were told that the endowment would not cover the cost of the mortgage unless we doubled our endowment payments. We could not afford that so Halifax recalculated our mortgage to a repayment mortgage, rendering the four years interest payments on our mortgage useless. We told our endowment that we would no longer need the policy. We were advised that the £3900 in payments would remain in the policy until the end of the term which was last year, we phoned them to ask for the money and they said it had all gone . Is this right

amnblog

Lespat wrote: »

We were advised that the £3900 in payments would remain in the policy until the end of the term which was last year, we phoned them to ask for the money and they said it had all gone . Is this right

Probably.

The policy was designed to be paid regularly over an extended term, not 4 years - the bulk the premiums paid in that period would cover marketing costs - balance has most likely been soaked up in administration.

Making a choice and changing your mind is not a case of being miss-sold.

Clearly you were wise to revert to repayment in your case and you have restricted your loss to 4 years premiums rather than leaving yourself with an unpaid mortgage which is the case for many here.

ACG

If you look at this from a positive point of view, £3,900 divide by 48 (4 years) is £81 a month - presumably less than what it would have cost to rent?