endowment mis selling time limits-advice needed

doubleday

Would be grateful for any advice.
I took out my endowment in 1992 with Friends Provident. Complained about mis selling in 2003,filled in all the forms and they agreed based upon my attitude to risk etc. They offered me the surrender value plus compensation based upon comparing it with a standard repayment mortgage. Offer was £8,787 plus £3,370 valid for 6 months.I did not think this was a good offer at the time but did not make any further complaints due to various reasons(new baby,moving house and job etc) I have buried my head since then and my last red statement shows a value of £16,991.
I definitely want to cash it in and reduce my interest only mortgage of £100,000. Is it still possible to claim compensation? Or do I just cut my losses as my first complaint was 4 years ago?
Thanks for any help Glenn

dunstonh

Is it still possible to claim compensation?

No. You only get one bite at the cherry.

The redress calculation is not something you can haggle with anyway. It is a defined calculation that is designed to put you back in the position you would have been had you gone with a repayment mortgage. If you take the redress and the surrender value and pay that off the mortgage and switch to repayment mortgage, then it will be the same as having taken one out from the start.

You may find the monthly repayments are more expensive with repayment mortgage but thats because endowments were generally cheaper than repayment mortgages and that was a common reason for doing them.

EdInvestor

dunstonh wrote: »

You may find the monthly repayments are more expensive with repayment mortgage but thats because endowments were generally cheaper than repayment mortgages and that was a common reason for doing them.

It's often cheaper just to reduce the existing I/O mortgage with the surrender value lump sum, and then increase the monthly mortgage payment by the surplus endowment premium thus overpaying the mortgage.

Cuts the amount of interest you pay and is also more flexible than switching to repayment as you can just stop overpaying if you have a temporary problem.