Mis Sold Enowment (yet again!)
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MrsAk_2
Posts: 11 Forumite
sorry, for posting this again, but I think my questions may have got lost along the way
We have just received a red letter from Royal London in relation to one of our endowment policies, and have a coupld of questions
1. Two years ago when we received the last letter, the policy was still on track to pay out the target amount - the next letter we received (last week) was a Red letter notification - we have only 7 years to go on our mortgage, and our shortfall may be £13,000 - should we have received a warning letter (amber?) during the past 2 years, or is this normal.
2. When we originally took out this endowment policy forthe purchase of a new house, we did so on the basis that my Husband already an endowment mortgage which had been running for a number of years - we were told by the salesman that there were 2 options open to us; either to cash in the existing endowment and then have a straight repayment mortgage - which our advisor said would be stupid - or to change my H's policy into joint names, put this towards our mortgage and then take out another endowment to cover the increase in the new mortgage - we took the 2nd option, as we were told it was the most sensible thing to do - however, we were never told that we could have a part repayment/ part endowment mortgage . My question is whether this might be grounds for claiming we were mis-sold the policy??
the original endowment had a target of £20,000 (and is on track), but the new endowment, was much bigger, with a target of £74,000.
Does anyone know if we may have a chance here, or are we going to be wasting our time?
We have just received a red letter from Royal London in relation to one of our endowment policies, and have a coupld of questions
1. Two years ago when we received the last letter, the policy was still on track to pay out the target amount - the next letter we received (last week) was a Red letter notification - we have only 7 years to go on our mortgage, and our shortfall may be £13,000 - should we have received a warning letter (amber?) during the past 2 years, or is this normal.
2. When we originally took out this endowment policy forthe purchase of a new house, we did so on the basis that my Husband already an endowment mortgage which had been running for a number of years - we were told by the salesman that there were 2 options open to us; either to cash in the existing endowment and then have a straight repayment mortgage - which our advisor said would be stupid - or to change my H's policy into joint names, put this towards our mortgage and then take out another endowment to cover the increase in the new mortgage - we took the 2nd option, as we were told it was the most sensible thing to do - however, we were never told that we could have a part repayment/ part endowment mortgage . My question is whether this might be grounds for claiming we were mis-sold the policy??
the original endowment had a target of £20,000 (and is on track), but the new endowment, was much bigger, with a target of £74,000.
Does anyone know if we may have a chance here, or are we going to be wasting our time?
0
Comments
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Hi Mrs AK
I suggest you look at the Which site to see if you have grounds for complaint.
https://www.endowmentaction.co.uk
But I assume you know that compensation will not cover the shortfall, it will only put you in the position you would have been if you had taken out a repayment mortgage.Trying to keep it simple...0 -
thanks for this - I have already seen the Which site - just can't really find out if my complaint is valid, or how I prove it, iyswim0
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Go for it, complain ASAPIf you don't know what you are talking about keep quiet0
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