Won claim can i do this

betterfixit1

Thanks to sites like this I decided to complain to the Halifax about my endowment from 1986. They admitted I had been missold and gave me options of taking cheque of £1700 going to ombudsman.

They said that they would put us in the position we would have been in had we taken repayment. This is not true. When I went to the building socielty to see how much it would cost to convert to repayment they told me we would owe around £12- 13,000. We only borrowed £28,000. Now If we had gone with repayment we would be paying part interest and part repayment. This would reduce the balance and since we only have 6 years to go our reduced balance would be nowhere near this amount. Infact as I recall we would be considering paying the balance off around the 3 year from now as balance would be so small. This amount has not taken inot account the fact that we had the money to pay and would have done so. We would also have taken life insurance out seperately. We would have taken the reducing balance approach as we had this previously.

Therefore this does not put us in the same position as we would have been. We would have made higher payments and this would have reduced our amounts by much more. What can i do about this? The guy at the society says to go to the ombudsman as he secretely agreed. Should I first write first again to the building society or write straight to the ombudsman, Because it specifically says it will put us in the position we would have been in, I think we have a case. what do you think? need answers soon please! and thanks again for these sites

dunstonh

Have you deducted the cost of life cover over the term, the fact the endowment mortgages were cheaper in the days of higher interest rates and have you included the surrender value in that £1700?

It is to put you in the position you would be on a repayment mortgage minus the cost of life cover and any monthly payments where the endowment mortgage would have been cheaper than repayment.

MarkyMarkD

You won't get any more by going to the ombudsman than they are offering you in the first place - they use the same formula to calculate the compensation as the ombudsman would do.

The major difference to note is that the compensation is payable now, whilst the anticipated shortfall on the endowment is at maturity. It's common for people to think their compensation offer is not enough because they are offered a lot less than the shortfall - but that shortfall is a projection, not the amount you are short at this point in time.

betterfixit1

My argument is not about the shortfall projections. It is the fact that they say they are comparing if you had a repayment with endowment. My payments would have decreased now as the balance became less. I was told that I would have to pay more now to transfer. it has nothing to do with projections but putting me back as if I had been paying on a repaymnet loan. Everything else is nowhere as it shows a massive flaw.

it is not about the future but now. Now I would have owed much less than they are saying. Think about it you borrow £28,000 in 1986 under repayment you pay capital and interest. it is now 2005 how much do you think that you would owe. No-one can say 12 to 13,000 with 6 years to go. insurance would not come into it as we would have paid this seperately.

I know that there is a formula but surely exposing this flaw is best as I am interested in my position now. This surely is not the same position that I would have been in, the amount would have dwindled to nothing under repayment and the sum should not take into into what we have paid but what we would have paid and I dont agree with the figures. Does anyone see what I mean?

Fatboy_NSS

betterfixit1 wrote:

This surely is not the same position that I would have been in, the amount would have dwindled to nothing under repayment and the sum should not take into into what we have paid but what we would have paid and I dont agree with the figures.

The calculation can only take into account what you have actually paid. If you should have paid more then you should now have that money in your savings now. You can't ask the bank to take into consideration payments that you would have made, only payments that you did make.