mis-sold endowment mortage compensation reasonable ?

She ought to insist on being put in the position she would be in if she'd not bought the endowment. I jad a mortgage with TSB and they screwed it up. When I complained they put me back in the position I would have been in had they not screwed up. The letter that they wrote told me that this was standard practice.

yerh, that's all we want really. not to make money out of this but just be in a better position than we are now or like you say, the position we should be in.

Are you sure that is what they have not offered? Although having only paid

12k of a 30k mortgage in 15 years is not ideal. I wouldn't imagine it is *that* far away from what it should be.

Seems strange that is she had a repayment for 2 years, she then switched the mortgage to a 25 year endowment. Why not a 23 year endowment? (Assuming the original term was 25)

Than in itself is terms for complaint.

What was the original term before switching? I have seen it argued that if the mortgage term was extended and that was not wanted as retirement was earlier that they then need to put her in a situation that she would have been in for her target retirement age.

I only had a rough guide this morning as I wanted to get some background information going before I saw her this evening, but yes I am fairly sure all those figures are correct - I will see the actual documents this evening though.

Basically she seems to have been totally sold on the benefits of an edowment mortgage and how at the end of it she will actually have n thousands more pounds to play around with on top of paying for the mortgage. She says from what they told her at the time she would be stupid not to stop her repayment mortgage and switch to a new endowment mortgage. At the time she wouldn't have had much money after recently seperating so I expect that she would have taken it over 25 years to keep similar low monthly payments. My mother comes from an era where you just did what you were advised to do by the first person that came along, remembering of course that her husband would have delt with all these matters.

I will investigate more about the previous mortgage and hopefully get some idea of where she would be at if she had continued with the original repayment one. When I have these calculations where do I go next? Back to the mortgage lender/endowment provider who made the offer or off to the ombudsman? I would want to take the easiest route and fastest for her even if this doesn't mean she ends up with the most money as once again she's going through another seperation :/ hence why I'm now looking into all her finances.

Regards, Alex

"Phil Deane" wrote

Not necessarily. Many With Profit endowments with 23 year terms may be poorer value than a 25 year WP endowment, simply because the bonuses declared may be set so as to make 25 year (and 10 year) terms maturity payouts look much better!

This is because publications often show 10 & 25 year WP payouts (only) for comparisons - so bonuses may get "fixed" so as to improve 25 year term endowments (in value terms), subsidised by otherwise lower 23, 24, 26 & 27 terms etc.

In message , Alex Guess writes

Have you worked out how much it would cost per month to pay £17,400 over

8 years as a repayment mortgage.

Also, what would the balance owing be if she had had a repayment mortgage since 1988.

These 2 figures should help you to establish how fair the offer is.

I'd ask the company how they arrived at the figure. They should be able to show you how they worked it out.

Someone at work was saying they use an algorithm defined by the FSA. Not sure if that is true.

Si

They are supposed to follow guidelines set down by the FSA. Those guidelines may be open for interpretation though, so one compnay could be more generous than another.

You need to exhaust all options made available by the company before FOS will take it.

So go back to the endowment provider.

Are the guidelines publically available?

Si

To answer my own question, found this in another posting : The basis for compensation calculations can be found at

Example of calculations are given from page 27 onwards.

Si