Successful endowment claim but...

Rob_M_2

Winterthur Life have upheld my mis-selling claim but have asked how I want the compensation worked out. I have two choices. They state:-
1) "We can calculate any loss by using your exact mortgage details, i.e. making allowance for any change in lenders or special deals that you may have had, or 2) we can use the assumption method which assumes that you had a Standard Variable rate mortgage with the Halifax throughout the term of your mortgage".
I would imagine that option 2 would be the best option but wonder if any of you knowledgeable people can advise?
Many Thanks
Rob M

dunstonh

This is asked often. 2 would possibly give you the worst figure of compensation. The higher the interest rates, the cheaper the endowment mortgage is compared with repayment mortgages. As rates came down, the repayment mortgages got cheaper.

Problem is that you will need to give details of all your rates over the period to get number 1 chosen and that isnt easy much of the time. Therefore number 2 is given as the convenient choice.

Rob_M_2

Not sure I'll be able to find the rates over the last 19 years. I don't want to make a profit out of this - just to get to how I would have been with a repayment mortgage from the outset - if this is what the FSA stipulate then shouldn't both options get me in that position? I have two successful claims with Eagle Star but they don't give any options, just an in depth questionaire (probably the same as option one thinking about it!)
Thanks for your quick reply dunstonh.
Rob

Froggitt

If you want to go route one, just write a short letter to whoever your mortgage(s) were with asking them for the details of rates charged.

Rather than not wanting to make a profit out of it, think more about minimising your losses.....the most that you can validly get, the better IMHO.

dunstonh

just to get to how I would have been with a repayment mortgage from the outset - if this is what the FSA stipulate then shouldn't both options get me in that position?

Then problem is that to get you in the exact position, you need exact information. Froggits suggestion to ask your lender is a good one. However, some people change lenders often and it could be time consuming and individuals may not want to do that. So, the standard variable rate option is offered.