Endowment short fall

msconsumer

Hi I am not sure to do with the short fall of £6,000 on my mortgage. I took out the endowment 25 years ago to cover £23,000 , which is just part of the mortgage, as it is in three parts repayment and a loan.
I have been told by a financial adviser that I could take out a mortgage at an interest rate of 1.75 %.
Just want to know if there is anything else I can do??
Have seen adverts for claiming the shortfall back for the original lenders? Is this possible?
Thanks

TamsinC

think you missed the boat for that I'm afraid

dunstonh

Just want to know if there is anything else I can do??

Shortfalls on endowments started around 2000. Why have you left it until now?

Have seen adverts for claiming the shortfall back for the original lenders? Is this possible?

No. It has never been possible to claim back the shortfall. Endowment complaints were common between 2000 and 2009 (although the uphold rate saw most rejected - although a significant minority were upheld). By 2009, around 3/4rds of endowments were timebarred from complaint. So, today, only a small number can be complained about. However, you dont get the shortfall on a succcessful complaint.

The rule is that you have 6 years from the sale or 3 years from being reasonably aware of an issue to raise a complaint. With statements having been giving shortfall warnings for 18 years, the 3 year is statistically likely to have been met. Although the provider (if they sold it) can choose not to enforce the timebar.

Who is the endowment provider?

msconsumer

Thanks for you answers. I did contact the endowment company Friends Provident (who have been taken over by Avia.) I did contact FP when I found out about a shortage over 20 years ago. The produced a copy of notes stating that the value good go up as well as down. I was told that I could not make a claim.

dunstonh

msconsumer wrote: »

Thanks for you answers. I did contact the endowment company Friends Provident (who have been taken over by Avia.) I did contact FP when I found out about a shortage over 20 years ago. The produced a copy of notes stating that the value good go up as well as down. I was told that I could not make a claim.

If you have already tried and rejected then that avenue is now closed as you only get one bite at that cherry.

Penelopa.Pitstop

Can you not take repayment mortgage for the last £6000 and just pay it off?

scott_lithgows

Overpay your mortgage by 80 quid a month for 6 years.
Remortgage to a cheap rate that allows overpayments