Hi This has probably been well hammered but don't usually follow this newsgroup. Like many others we've been caught out by our endowment mortgage. OK I suppose they are a risk, not that that side was ever highlighted. Is there anyway to pursue policies that are guaranteeing just over half there original value? Any good sites? I think I'm wasting my time since it appears we should have taped the interviews when we were sold the policies. Any help/guidance appreciated Esox
Worked for me also. Remember though esox, it isn't JUST about the fact that the policy that will fall short of original expectations (many fit that bill but don't qualify for comp), you have to prove that you were mis-sold it (policy not suitable for your personal situation perhaps), given bad advice, whatever.
Many thanks for the feedback. Will sit down and go through our records and fill out the form. Nothing to lose. Shame our policies were with Standard Life and Norwich two of the worst! Cheers
"OK I suppose they are a risk". So if you knew, how would 'highlighting' this have made any difference?
It's not clear from your post how old your endowment is, but AFAIAA back in the 70s, when these things seemed to be popular, it wasn't the touchy feely, hand holding, world of today. Did the various financial regulatory bodies exist back then? I rather suspect they didn't, and even if they did, thet weren't circumscribed with all the rules they seem to have these days.
I'm not trying to be clever, but endowment mortgages always seemed too me to be too 'clever by half', with their wonderful projections of paying off the capital sum at a stroke, and having oodles of cash left over to swan off round the world.
My old dad always used to say you don't get owt for nowt in this world, and from my observations, if something seems too good to be true, it probably is.
Caveat emptor should be the watch word, and a little more time in schools devoted to educating kids about basic financial facts wouldn't go amiss either.
Sorry, that's my grump for the day out of the way,
Grumpy old man,
Rgds
__ Richard Buttrey Grappenhall, Cheshire, UK __________________________
It was indeed the 1970s which started the endowment mortgage explosion, via the use of "Low Cost" endowments. These were essentially hybrid policies - part endowment, part term insurance. Previously, endowments *guaranteed" to pay off the loan, as the Sum Assured was equal to the loan, and did not require any projected bonuses to make up any shortfall.
And the Building Societies (banks did not "lend long" in those days) loved them for the commission they earned from them.
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