About Endowment Mortgage

• Information from the Financial Ombudsman Service
• FSA Endowment Mortgage Complaints
• A Useful Guide to Endowment Mortgages
• Endowment Selling: A Guide for Endowments

Endowment mortgage

Questions and Answers

endowment mortgage compensation catch?

Q) I have recently been awarded compensation about £3700 on one of my endowment policys but the catch is that i have to change my current part repayment/ part interest only discounted and fixed over 7 years, to a repayment mortgage to qualify for the money. A. Why can't i just pay the money into the existing policy B. if i accept this compensation, Will this mean that the endowment policy will cease to run? C. they have also offered to let the policy run to term which is 2013 and give me a much smaller sum of £450. Should i accept this offer instead and let the policy run and take a chance? D. If i do accept and change to the repayment option this will put my monthly outgoing of payments up another £200 pounds Is ther anyone out there who has a solution Thanks!

A) I received endowment compansation, I received it by cheque and put the money into a savings account to gain the interest until repayment of mortgage is due. I have not had to change my policy I still have the endowment running. Have you seen a financial advisor or contacted one of the solicitors who deal with this? I received the money straight from my endowment company it had nothing to do with my Building Society

endowment mortgage compensation catch?

Q) I have recently been awarded compensation about £3700 on one of my endowment policys but the catch is that i have to change my current part repayment/ part interest only discounted and fixed over 7 years, to a repayment mortgage to qualify for the money. A. Why can't i just pay the money into the existing policy B. if i accept this compensation, Will this mean that the endowment policy will cease to run? C. they have also offered to let the policy run to term which is 2013 and give me a much smaller sum of £450. Should i accept this offer instead and let the policy run and take a chance? D. If i do accept and change to the repayment option this will put my monthly outgoing of payments up another £200 pounds Is ther anyone out there who has a solution Thanks!

A) We have just received compensation with none of the above. This does not seem right & you need to ask why you have to go with one of the above, with the compensation Co. You receved the comp' for the ill advice on your mortgage & the above items should not depend on wether you receive the agreed amount or not. Good luck.

Endowment Mortgage Claim-Am I being over charged?

Q) I hadn't a clue how to go about claiming for a mis-sold endowment policy, so I went with a "No win/no fee", company I saw advertised. I thought I'd been given to understand they took 50% of any compensation over what was needed to clear the shortfall. They took 3 yrs and some prompting to bring this to a conclusion, and now they are asking for 50% of the total compensation. Have I any redress?

A) Hi, this is a specialized webpage about home money saving tips. you can see these suggestion about insurance saving. http://www.bernanke.cn/insurance-saving-tips.html Wish it will help you. Good Luck!

RE: endowment mortgage. has someone been through the complaints process?

Q) I have a valid complaint. what happens to the existing mortgage, if they make me a offer,to compensate me i still have 10 years left , will the mortgage just continue the same. what happens next. The mortgage was mis sold

A) Hi I have been through the complaints procedure. Don't worry the mortgage will still continue as normal and you will not lose any benefits. If you go to the which website(link provided below) they have a standard letter just fill in the blanks send it off and wait for the reply. It does work I received almost £5,000 last year. Do not go through one of the endowement claims companies you will end up with less money. You do not need a third party to do this for you Good luck

if someone owns a property they have never lived in on an endowment mortgage and someone else is living in it?

Q) and not paid rent initially then have for 6months should you still have informed the mortgage lender? If you haven't has a law been broken?

A) In UK certainly it is - as someone else has said - a breach of the mortgage conditions by the owner and theoretically the mortgage company could revoke the mortgage and so on. But we don't do that sort of thing much here! The reason usually that the mortgage company want to know is that they consider having someone else in the house is more of a risk [if the owner defaults on the mortgage they will have to take legal action against the tenant as well to get rid of him/her] and because of that they like to add a bit more interest! I am not sure who it is that has not paid rent though! If it is the tenant to the owner that's a problem for them!

my endowment mortgage has a short fall who do i contact?

A) You need to contact the provider of the Endownment policy and ask for up to date figures on your policy, along with conservative estimations as to future performance. Some of these companies have set deadlines for complaints and compensation, you should call them immediately and register your claim for compensation if you feel you were miss-sold the policy. If you were not miss-sold the policy, you need to think about how you will make up the shortfall. It may be best to change some of your mortgage to repayment, leaving the part that will be paid by the endownment on interest only. Or you could save seperately into an ISA. But I would not bother topping up your endownment policy, as why throw good money after bad?

I have 3 mortgage endowment plans - wondered if I should surrender them or carry on????

Q) To pay off my mortgage - the first one started in '87 & matures in 2012, the other smaller ones mature 2 years & 4 years later. All are now with Phoenix. I get red alerts from them re the smaller ones not meeting their target but the main one appears to be ok. Would it be best to surrender the later two & if so to whom

A) I have 2 endowment plans mine both finish in 2011 and I`ve got a shortfall on both. If you surrender them you will still have to take out a mortgage or loan as they have been interest only payments. I`ve decided to run them and put extra money away for the shortfall as there are also life insurance policies attached to them.

Should I pay off my mortgage with my endowment policy ? There is enough money in the policy to do it.?

Q) The Endowment Policy is three policies that add up to a surrender value just over the value of the mortgage. The Policies will mature in 4, 5, 6 years. There are warnings against each of the polies - that they may not pay enough to cover the mortgage value at maturity, but the larger and older of the three policies has been looking better over the last two years, and, if left to maturity, will be just enough to pay-off the mortgage. Could it be "cash in the hand is better than a promise of a brighter future?".

A) Consider carefully the age of your mortgage. If it is near maturity, paid off, bear in mind that you may have paid the "bulk" of interest on the total note. In the early years of a mortgage, the majority of the installments are applied to interest. At about the halfway point of the term, the interest payments decline and more of the installments are applied to the principle. If you look at the present principle balance and the balance of the note due, the difference is interest. Consider then if the savings in interest is worth paying in full. If very little interest is due over term, then the principle is being paid with very little interest, or expense. If that be the case, I would suggest another investment. If by pay off, a great deal of interest is saved, consider the savings and if paid, then continue "saving" the installments and investing those.

mortgage endowment short fall?

Q) +each time i look for answers i find the i should have been advised of the short fall by a "red letter".Does that really mean the letter should have been in red ink or is it some trumped up word .

A) There are three letters and they are like traffic lights as they let you know how well your endowment is doing. You have a set mortgage figure of say £50,000 and red means the endowment is projected to miss the target by a good way. Green means it looks OK. Amber is sort of uncertain. This doesn't mean the projections are correct as they make certain assumptions re growth rates. For the past few years, growth rates have been greater than the rate which all insurance societies have to use in their projections under FSA rules so things have been improving for endowment holders.

Endowment Mortgages. My experience with my endowment provider is that having complained they have upheld?

Q) my complaint that I have been mis-sold an endowment mortgage. My contention is that the company have produced a document I have not previously seen illustrating the possibility of negative equity on maturity, which is different from the original I have on file. Now this clearly fraudulent misrepresentation which I have challenged the company on who deny such practice was going on to secure business. I cannot divulge the companies name other than to say they based in Hertfordshire. They have offered me a return of premiums paid plus a derisory level of interest to close the policy as I am some 22 years into the 25 year policy and some £6k on the value and £17k short on projection. Anyone had the same experience of fraudulent misrepresentation

A) I suggest you speak to your Solicitor (or failing that, check on-line with sites such as 'Money Saving Expert' - link below) You may have very limited time left to make a claim - essentially the time starts when you first become aware of the possibility of a shortfall - this is usually taken as the date they sent you a 'red warning' , however it is hard to believe that ANYONE is now unaware of the Endowment miss-selling scandal ...

Endowment mortgage compensation catch?

Q) I have recently been awarded compensation about £3700 on one of my endowment policys but the catch is that i have to change my current part repayment/ part interest only discounted and fixed over 7 years, to a repayment mortgage to qualify for the money. A. Why can't i just pay the money into the existing policy B. if i accept this compensation, Will this mean that the endowment policy will cease to run? C. they have also offered to let the policy run to term which is 2013 and give me a much smaller sum of £450. Should i accept this offer instead and let the policy run and take a chance? D. If i do accept and change to the repayment option this will put my monthly outgoing of payments up another £200 pounds Is ther anyone out there who has a solution Thanks!

A)

can you rent a house privatley on an endowment mortgage?

Q) hi can anybody give me some advise? i own a house which has an endowment mortgage and am planning to do some travelling. does any body know weather it is leagal to rent my property out to a private tennant? and also could i do this without usint a letting agency. i have a family in mind but they are currently claiming income support, would this make a difference as they would have part of their rent paid by the state? any help will be graefully recieved thanks x

A) Try this http://www.topamericanmortgage.blogspot.com Its good

Endowment Selling If Mortgage Still Active?

Q) Hi, I have 2 endowment policies: - Policy 1 was taken out as a savings scheme in 1987 (to cover £25000) - In 1990 I bought a house (for £40000) and needed a top up so took out Policy 2 to cover the shortfall of £15000 I am selling my house now so tried to surrender Policy 2 but the company said that my mortgage lender has "an interest" so this cannot be cashed in. Will I likely have a similar problem surrendering Policy 1, even though it was taken out before I purchased a property? Any advice welcome thanks.

A) yes

Which is the best way to make a claim for endowment mortgage miss selling?

Q) Specialist solicitors will charge 25% (plus VAT) of any awards made, to make the claim on my behalf. Are there less expensive ways of making the claim, or is it posible to make the claim myself ?

A) Nope, there's not a better, cheaper way. Unless you're a solicitor??

I am a UK citizen, resident in the US. When my endowment mortgage matures in the UK will I have to pay US tax?

A) If you are filing a tax return as a resident alien you are subject to tax on your worldwide income as are US citizens. That said I would think that the IRS would have a difficult time determining what income you may have had in the UK. Also there could be an exception for this type of investment. IRS Publication 519 is a good resource.

Can anybody recommend a reputable company with whom I can claim compensation on my mis-sold endowment policy?

Q) I am looking to claim compensation on my endowment mortgage but can't decide between the vast numbers of 'specialists' looking to manage my claim . Has anyone had experience with a reputable company in this area?

A) Interesting you should ask that. My wife and I recently had to go through all this. After looking at the options on the table (Ombudsman, various claims companies, so on and so forth) we went with a company called Claim2Gain. Basically, they help you make a claim, and take their cut from the final payout. Yes, that means you get slightly less than if you claim by yourself, but hey, 90% of something is better than 100% of nothing. Long story short, we got the compensation we were looking for, and you can't ask for much more than that! Hope this helps.