I am in the process of applying for compensation for an endowment mortgage which was mis-sold to me in 1988. The insurance co have sent me a form with various questions, it looks like a fishing excercise to me, I am deeply suspicious.
As I understand it, they first need to establish if I was mis-sold the policy. Next they need to calculate the difference between my position now and what it would have been if I had taken a different mortgage.
In 1998, I moved house and took on a joint flexible repayment mortgage with my wife (the endowment was just in my name, I was a single first time buyer when I took it on). I kept on the endowment policy, mainly because everyone at the time was advising people not to cash them in because of the terminal bonus.
How will this affect the calculation? Since it was a flexible loan and interest rates have been low, it is now virtually paid off (but with another 9 years to go on the endowment).
Do I even need to reveal details of the new mortgage? It is joint, and my wife has no relationship with the insurance co, do they even need to know the details?
Onto the fishing questions. Anyone know what tricks they try to play?
One says "to assess my overall financial position" they want to know about my current pension arrangements and tax band. Why??? What are they trying to pull?
They also ask about my salary, savings and *expenditure* for heaven's sake, at the time I took on the endowment. Again, what are they up to?
Any help or experiences would be very useful.
Dom