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  • FIRST POST
    • aretsa9
    • By aretsa9 9th Jan 19, 12:14 AM
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    aretsa9
    Mortgage Endowment Policy Mis-sold
    • #1
    • 9th Jan 19, 12:14 AM
    Mortgage Endowment Policy Mis-sold 9th Jan 19 at 12:14 AM
    I'm confused and hoping someone can help me with the criteria for a claim for mis-selling of an endowment policy. We had an endowment policy on an interest only mortgage in 1986. Our Halifax mortgage was arranged by Black Horse Stimpsons and the endowment policy was with Friends Provident. We were told by the Black Horse Stimpsons adviser that the endowment policy was a condition of obtaining the mortgage - it was not optional. At the time we had sufficient funds to cover about 5 years of loan payments. We also had a life cover policy and sick pay and redundancy pay entitlements from our employers. These elements were not discussed. During the discussion the adviser simply wanted proof that we were employed. We were encouraged to take the interest only loan on the basis that the endowment policy would repay the mortgage and, additionally, provide a nest egg on maturity. This turned out not to be the case and we found ourselves with a shortfall of about £8000 on maturity. We would like to claim for mis-selling of the endowment policy but are not certain that we are eligible. Would appreciate any advice. Many thanks.
Page 1
    • Edi81
    • By Edi81 9th Jan 19, 6:50 AM
    • 651 Posts
    • 584 Thanks
    Edi81
    • #2
    • 9th Jan 19, 6:50 AM
    • #2
    • 9th Jan 19, 6:50 AM
    Have you done any searches on here prior to posting?

    If you did you’ll find lots of replies to similar to you that most endowment misselling claims are time barred now.
    • bigisi
    • By bigisi 9th Jan 19, 9:29 AM
    • 538 Posts
    • 972 Thanks
    bigisi
    • #3
    • 9th Jan 19, 9:29 AM
    • #3
    • 9th Jan 19, 9:29 AM
    Have you done any searches on here prior to posting?

    If you did you’ll find lots of replies to similar to you that most endowment misselling claims are time barred now.
    Originally posted by Edi81
    Of course not, people just come on here wanting someone to do it all for them.
    • dunstonh
    • By dunstonh 9th Jan 19, 10:36 AM
    • 97,579 Posts
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    dunstonh
    • #4
    • 9th Jan 19, 10:36 AM
    • #4
    • 9th Jan 19, 10:36 AM
    I'm confused and hoping someone can help me with the criteria for a claim for mis-selling of an endowment policy.
    Over 2/3rds of endowments are now timebarred from a complaint. You are very very late to be looking at it now.

    We had an endowment policy on an interest only mortgage in 1986. Our Halifax mortgage was arranged by Black Horse Stimpsons and the endowment policy was with Friends Provident.
    This bit is the only key bit of information needed. Financial services regulation started in 1988. You bought in 1986. Whilst banks and building societies voluntarily agreed to consider pre-regulation sales, estate agents did not. So, this makes yours a pre-regulation case with no access to FOS or FSCS.

    it was not optional.
    It wouldnt be. Interest only mortgages required a repayment vehicle back then. This pre-dates pension mortgages and PEP mortgages. So, an endowment was the only option for an interest only mortgage.

    At the time we had sufficient funds to cover about 5 years of loan payments.
    Irrelevant information.

    We also had a life cover policy and sick pay and redundancy pay entitlements from our employers.
    Also irrelevant.

    These elements were not discussed.
    You wouldn't expect irrelevant things to be discussed.

    During the discussion the adviser simply wanted proof that we were employed.
    It was 1986. Pre-regulation. It wouldnt have been an adviser. Polarisation happened in 1988.

    We were encouraged to take the interest only loan on the basis that the endowment policy would repay the mortgage and, additionally, provide a nest egg on maturity. This turned out not to be the case and we found ourselves with a shortfall of about £8000 on maturity.
    in 1986, no endowment had ever failed to hit target and pay a surplus.
    An £8000 shortfall probably means you ended up no worse off (endowment mortgages were typically around £25pm cheaper than repayment. Plus, you benefitted from double MIRAS for a lot of early years).

    We would like to claim for mis-selling of the endowment policy but are not certain that we are eligible.
    You are not.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • aretsa9
    • By aretsa9 13th Jan 19, 12:41 AM
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    aretsa9
    • #5
    • 13th Jan 19, 12:41 AM
    • #5
    • 13th Jan 19, 12:41 AM
    Many thanks to everyone for replies. Much appreciated.
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