Endowment mortgage

My mortgage is secured by three endowment policies, all of which mature next year, starting in June 2008. One of the policies (with 7100 guaranteed death benefit) taken out in 1983 has a shortfall according to the insurers (Phoenix). I was contemplating making a mis-selling complaint but is it really worth the bother for such a small amount (the shortfall would be

1000 at most). The other two policies were both taken out in 1983 (17850 & 2500 death benefits) and I have received green letters for both of these policies. The mortgage outstanding is about 27000, so hopefully I should easily be covered next year.

I would be interested to find out details of the terminal bonuses on these policies. The insurance company seems very reluctant to divulge such information, although I was once told verbally by a Phoenix representative that the terminal bonuses could be as much as 40% on the older policies - I find this very hard to believe.

Also, would it be worthwhile changing my mortgage to a low fixed interest rate for the final year and perhaps saving a few hundred pounds? I appreciate that there would be a transfer fee and possibly a final settlement fee but perhaps I could still save some money. I approached my present lenders (Darlington BS), but the offers they made were insulting. If I said I was changing my lender, they might be more generous. I pay about 220 monthly to them at present. I would dearly like to rob them of some of the final year's interest while I still have the chance!

Roll on 2008, when my mortgage and endowment payments will be finished and I will also receive my state pension next July. New cars & world cruises here I come, although a relocation abroad is worth thinking about as I really hate the UK and the government with its pathetic policies and nanny state conditions. Also the horrible climate. Any suggestions - Spain or any other warm European country, preferably with a good health service & cheap property prices. Australia & the far east are too far away from my family.

Terry D.

Reply to
Terry D
Loading thread data ...

Why is it mis-selling? I'm sure there is a caveat in the small print, and unless you have documentary evidence of what the scum salesman told you at the time, you'd surely be on a loser.

Tiddy Ogg.

formatting link

Reply to
Tiddy Ogg

I originally wanted the 7100 on a repayment basis, but the building society insisted the I take out another endowment mortgage. Also, the term of the policy was such that I would be over retirement age when the policy matured. However, I will probably not progress any claim. As you suggest, it's probably a loser.

The main points of my previous mail were a) Terminal bonuses - has anybody had experience re 25 year old policies? How much am I likely to receive as a %? b) Would it be worthwhile changing my lender with less than one year to maturity of the policies, or would the associated costs negate any advantage of a lower interest rate?

Terry D.

Reply to
Terry D

Ours is due to pay out this Dec. The letter we received last week saying how much we'll get says it'll be £2K less than the target amount and there's no mention of any terminal bonus - despite the fact that when we took it out were we assured it would pay up and we'd probably have a couple of thousand extra.

Unfortunately the age predates the industry regulations, so (AFAIK) there's no way to get compensation :(

Dave

Reply to
David Lowndes

I would think it would be extremely unlikely that you would gain by remortaging. However you should be able to check this. Just calculate the total amount you will pay under your current deal and compare this with the other deals. Don't forget to factor in any fees, exit penalties etc.

With regards to endowment policy complaints I would say one was definitely missold. However the Ombudsman will not help you if it was sold to you before May 1988.

I can't help you with the terminal bonuses. You should get something but this is really based on the whim of the insurance company IMHO. My insurer gives virtually no annual bonuses but keeps saying I will get a "good" terminal bonus, whatever that means.

M
Reply to
Mark

In message , Terry D writes

Phoenix? 0%

No.

Reply to
John Boyle

In message , Terry D writes

I find it hard o believe that a Phoenix Representative said such a thing. What do you mean by 'representative'?

Reply to
John Boyle

"John Boyle" wrote

Does that apply to *all* of :- ex-Abbey National Life ex-Alba Life (ex-Britannia) ex-Bradford Insurance ex-Britannic ex-Century Life ex-Phoenix ex-Royal & SunAlliance Linked Insurances ex-Swiss Life ?

Reply to
Tim

In message , Tim writes

Probably!

Reply to
John Boyle

Mark wrote: [snip]

[snip]

IIRC there are still some exceptions to this

Reply to
Fergus O'Rourke

I phoned Phoenix a few years ago and spoke to whoever answered. Unfortunately I have no recording of the conversation - I wish I had, although it counts for nothing unless in writing.

I ask again - has anybody any experience of amounts of actual terminal bonuses on 25 year policies. Surely there is somebody out there with a matured policy. Mine have less than one year to maturity but I am unable to get any estimate of the bonus amounts.

This is all in complete contrast to the situation 24 years ago when we were promised that taking out an endowment mortgage would result in thousands of pounds of profit. Fortunately my last loan was a repayment type and is now almost completely paid off (and I never took out any insurance).

I am now in the position of financing two of my three children to buy their own properties, as any property now is out of reach to buy unless you earn about 60,000 a year. Financially, I am able to do this, but I am concerned about the millions who will never be able to afford places of their own. Renting is an option, but is expensive, money down the drain and lining the pockets of the so-called 'property developers'. The government has pledged to build millions of 'affordable housing' but how can it be ever affordable?

Personally, if I needed a home, I would buy a mobile home for about 50,000 and then live anywhere I wanted.

Terry D.

Reply to
Terry D

What exceptions are these?

M
Reply to
Mark

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.