Endowment red letter day

fezza_2

Update.

The FSCS website states that BBNFS Ltd are in default, so have got through to the liquidator to notify them that we may have a claim, and they are sending out the paper work to fill in.

Have looked at endowment action and believe on a number of issues that we may have a caim, based on the paper work that I have and from talking to OH. ( My memory of events is vague due to brain injury and surgery)

Please will someone be so kind as to tell me how I am meant to calculate if I have lost out financially. There would be no point in pursuing a claim if we have not lost anything! Paper work is very tiring for me and I would rather spend that energy dealing with the shortfall if that were the case. Im fine with maths just need some kind soul to show me how. Thank you all

EdInvestor

fezza wrote:

Please will someone be so kind as to tell me how I am meant to calculate if I have lost out financially. There would be no point in pursuing a claim if we have not lost anything! Paper work is very tiring for me and I would rather spend that energy dealing with the shortfall if that were the case. Im fine with maths just need some kind soul to show me how. Thank you all

The red letter should say there is a "high risk" of a shortfall. Based on this, if your complaint is successful, the FSCS will calculate how much you should be paid to put you in the same position as if you had originally taken out a repayment mortgage.

No need for you to do any calculations, it's all done on the computer according to a formula designed by the regulator which all the companies have to follow

If there is a big shortfall it's pretty likely that you've made a loss.

fezza_2

Thanks ED told you brain doesn't work properly shortfalls range from 3,500 at 8% growth to 16,500 at 4% growth each year and as the bonuses are being paid at a rate of 1.5% of previous regular bonus this looks set to be greater in the next year or so.
I suppose it will all depend on how they allocate bonuses and funds as the policy matures. 18 months ago NU said they would pay 6.100 to make up shortfall in the policy, now they may not but will give us 3 years notice, but might not.Policy is devaluing at a rate of 500 pound evey 18 months at present,going by my paperwork so worst case scenario is to plan for a defecit of about 22000 if we are turned down in our complaint.
ITs all clear now, cheers I love this site.

dunstonh

Policy is devaluing at a rate of 500 pound evey 18 months at present,going by my paperwork so worst case scenario is to plan for a defecit of about 22000 if we are turned down in our complaint.

Unlikely to continue. NU just upped their bonus and have been increasing their terminal bonus again. The markets have shown a lot of recovery and things are beginning to improve. So the cycle should start working the opposite way.

fezza_2

Dunstonh, I hope you are right,have made an appointment on monday with an IFA in our village, see if he will be able to help with claim forms etc when I get all the info together.
Will probably post his advice for some second opinions from the knowledgable on this site

dunstonh

Keeping fingers crossed for you that you dont manage two duffers on the trot

fezza_2

Hi,
Saw the IFA on monday, advice seemed fairly sound.
1. ADDRESS SHORTFALL BASED AT THE 6% PROJECTION.
This would mean having part intersest, and 10k repayment over the remainder of our current mortgage period of 12 years.(Think I would like to repay more)
2. DONT CASH IN THE ENDOWMENT COS OF MY ILL HEALTH.
3. THEY ARE HAPPY TO HELP WITH ENDOWMENT CLAIM FORMS AT NO CHARGE
He gave us a guide that if we follow his advice on remortgaging, then we will be paying less than at present, and repaying part. Cheaper than over paying with current lender.

Have sent for Martins guide to remortgaging, so I will be fully armed if we use the IFA, with respect to fees of remortgaging versus savings on interest rates etc.

Awaiting forms from liquidator, and policy details fron NU. Will sort that out first. Then decide best way to proceed on remortgaging. I was pleased that the IFA did'nt try to sell any products to us, just said to pop in when I needed help with forms. Refreshing change . Spose its the advantage of a small village, where news of any kind travels fast, but the way he spoke about money was like he was a member of MSE....mmm.

dunstonh

Pleased it went well for you. The attitude of the small local IFA is likely to be different to the big guns as I suggested it would be. We totally rely on generating our own business and referrals from friends/family etc are vital and you only get those when you do a good job.

FOSman

You've answered your own question. Its a Ltd company. Take it to the FOS, who should refer it to the FSCS.