Mortgage Endowment Policy Mis-sold

aretsa9

I'm confused and hoping someone can help me with the criteria for a claim for mis-selling of an endowment policy. We had an endowment policy on an interest only mortgage in 1986. Our Halifax mortgage was arranged by Black Horse Stimpsons and the endowment policy was with Friends Provident. We were told by the Black Horse Stimpsons adviser that the endowment policy was a condition of obtaining the mortgage - it was not optional. At the time we had sufficient funds to cover about 5 years of loan payments. We also had a life cover policy and sick pay and redundancy pay entitlements from our employers. These elements were not discussed. During the discussion the adviser simply wanted proof that we were employed. We were encouraged to take the interest only loan on the basis that the endowment policy would repay the mortgage and, additionally, provide a nest egg on maturity. This turned out not to be the case and we found ourselves with a shortfall of about £8000 on maturity. We would like to claim for mis-selling of the endowment policy but are not certain that we are eligible. Would appreciate any advice. Many thanks.

Edi81

Have you done any searches on here prior to posting?

If you did you’ll find lots of replies to similar to you that most endowment misselling claims are time barred now.

bigisi

Edi81 wrote: »

Have you done any searches on here prior to posting?

If you did you’ll find lots of replies to similar to you that most endowment misselling claims are time barred now.

Of course not, people just come on here wanting someone to do it all for them.

dunstonh

I'm confused and hoping someone can help me with the criteria for a claim for mis-selling of an endowment policy.

Over 2/3rds of endowments are now timebarred from a complaint. You are very very late to be looking at it now.

We had an endowment policy on an interest only mortgage in 1986. Our Halifax mortgage was arranged by Black Horse Stimpsons and the endowment policy was with Friends Provident.

This bit is the only key bit of information needed. Financial services regulation started in 1988. You bought in 1986. Whilst banks and building societies voluntarily agreed to consider pre-regulation sales, estate agents did not. So, this makes yours a pre-regulation case with no access to FOS or FSCS.

it was not optional.

It wouldnt be. Interest only mortgages required a repayment vehicle back then. This pre-dates pension mortgages and PEP mortgages. So, an endowment was the only option for an interest only mortgage.

At the time we had sufficient funds to cover about 5 years of loan payments.

Irrelevant information.

We also had a life cover policy and sick pay and redundancy pay entitlements from our employers.

Also irrelevant.

These elements were not discussed.

You wouldn't expect irrelevant things to be discussed.

During the discussion the adviser simply wanted proof that we were employed.

It was 1986. Pre-regulation. It wouldnt have been an adviser. Polarisation happened in 1988.

We were encouraged to take the interest only loan on the basis that the endowment policy would repay the mortgage and, additionally, provide a nest egg on maturity. This turned out not to be the case and we found ourselves with a shortfall of about £8000 on maturity.

in 1986, no endowment had ever failed to hit target and pay a surplus.
An £8000 shortfall probably means you ended up no worse off (endowment mortgages were typically around £25pm cheaper than repayment. Plus, you benefitted from double MIRAS for a lot of early years).

We would like to claim for mis-selling of the endowment policy but are not certain that we are eligible.

You are not.

aretsa9

Many thanks to everyone for replies. Much appreciated.

debraE

I have the same problem, but a claims company, advised me that tbere is a loophole and that tbey can claim as far back as 1994. Im not sure how true this is, but tbey are a no win no fee basis. However tbey are asking for 42% including vat. Thats a bit high in my opinion. It doesnt cost any more to claim 5k or 50k. So im re thinking.. might look for another company.

dunstonh

I have the same problem, but a claims company, advised me that tbere is a loophole and that tbey can claim as far back as 1994

Either you have misunderstood or they are BSing you.    The only relevant date regarding 1994 is that it was the last year of FIMBRA.  Any FIMBRA firms that wanted to continue had to become regulated by the PIA (now FCA).  Historic liability would be classed as continuous (giving access to FOS and FSCS).   If they chose not to become regulated by the PIA then then there is no-one to complain to and you dont get access to the FOS or FSCS.

FIMBRA was mostly used by accountants and solicitors.  Most FIMBRA firms did not continue with regulation after the cut off.

So, no loophole exists.

Remember that it is not a claim. It is a complaint.   So, the regulations about complaints are what matters.