Has anyone been mis-sold an endowment mortgage?

[joolz1910]

If so, how easy was it to prove you had been mis-sold? Our endowment matures in 14 years and we have been warned that we face a potential shortfall of about 40%!

I have the original paperwork and it does say that there is no guarantee but the forecasts on what it could pay out start at growth of 5% and go on to 10%, implying that 5% is the minimum to be expected.

I remember our independent financial advisor telling us about the risks in a 'I have to tell you this, but it is soooooo unlikely' speech. He made us believe that the risks were almost non-existent but he did say there were no guarantees. It is our word against his, but I feel that we were persuaded (mislead) by someone we trusted.

Perhaps we were young, naive and stupid then, but it seems like a massive shortfall now.

 

[Roddy lawrie]

Juliette the 3 projection rates used are for guidance only, the middle rate of 7.5% i assume is what was required to meet the liability .The advisers rhetoric would have been positive and you likely reacted the same at the time , given inflation and returns were high at the time

BUT their never was any guarantee to the final pay out .Without sounding harsh , thats the risk you take with that kind of product

 

[tennisfan]

I think what they mean by being mis-sold is by never being warned there maybe a shortfall & by having paperwork that doesn't warn of this or it says you are guaranteed the to meet the targets.

By the sounds of it, you don't fit into the catagory, sorry. My aunt had an endowment mortgage & was warned several years back of the shortfall so she changed it there & then.

 

[orlandothebeagle]

Hi Joolz
It was AGES ago we got compensation for this, we did not have to prove anything as far as I can remember, dont go through a third party, do it yourself, go to who ever sold it you you and tell them the deal. Maybe some one else can help btter, good luck. When we got compensated we had to sign a disclaimer saying that was it, we had no comeback.
It must have been around 6 yeras ago now.
I dont think we were warned about the risks though, that was about 20 years ago, when it all went ****s up we got another capital and repayment mortage.

 

[orlandothebeagle]

I should say that it was only a grand or somehting, it in no way covered the shortfall in any way or form.

 

[joolz1910]

By the sounds of it, I wasn't mis-sold. I never take risks lol, so he must have been pretty convincing at the time. It originally said that it would be on target at 7% but our latest paperwork says that at 6%, we will have a 20% shortfall. I'm not good at maths lol. I'm annoyed because he was positive at the time, stressing the likelihood of it paying out an additional lump sum and pretty much dismissing the likelihood of there being a shortfall.

I've transferred 20% of our endowment over to repayment - at least that might help with the shortfall. I'm just not sure whether I can afford to transfer any more.

 

[higgy66]

If I were you I'd go on Martin Lewis's money tips website as there's lots of stuff on there and also a Forum where you could ask your question.

I seem to think there was a deadline for claiming but I could be wrong.

Good luck

 

[strawberry blonde]

We were the same as you. Sold an endowment with expectations of a nest egg and the projection now is that it will probably be 50% short. Maybe we were naive, 1st house and mortgage. Tried to make a claim and had to fill in pages with questions like ' how much were your outgoings etc when you applied for the mortgage?'. The annoying part was, it was impossible to remember exact amounts as we're talking 1991. Then they asked how much we had now and outgoings now etc.
The result was they thought we weren't any worse off now so had no claim and they then sent me a copy of how much our outgoings were etc from 1991 which was annoying as they knew all along.
The only reason we weren't worse off was because I lost my Mum and Dad and received some money from the sale of their house.

I've now put the projected shortfall amount onto repayment as I refuse to pay extra into the endowment policy.
Give it a try, they can only say no. Good luck.

 

[joolz1910]

We were the same as you. Sold an endowment with expectations of a nest egg and the projection now is that it will probably be 50% short. Maybe we were naive, 1st house and mortgage. Tried to make a claim and had to fill in pages with questions like ' how much were your outgoings etc when you applied for the mortgage?'. The annoying part was, it was impossible to remember exact amounts as we're talking 1991. Then they asked how much we had now and outgoings now etc.
The result was they thought we weren't any worse off now so had no claim and they then sent me a copy of how much our outgoings were etc from 1991 which was annoying as they knew all along.
The only reason we weren't worse off was because I lost my Mum and Dad and received some money from the sale of their house.

I've now put the projected shortfall amount onto repayment as I refuse to pay extra into the endowment policy.
Give it a try, they can only say no. Good luck.

Thanks. I feel the same as you - we were sold it like an endowment was a no-brainer. It is really annoying! I know any investment carries a risk but we were led to believe that this was negligible - he actually laughed off the idea that the endowment wouldn't pay the mortgage!

 

[orlandothebeagle]

Thanks. I feel the same as you - we were sold it like an endowment was a no-brainer. It is really annoying! I know any investment carries a risk but we were led to believe that this was negligible - he actually laughed off the idea that the endowment wouldn't pay the mortgage!

Hilarious

 

[joolz1910]

Hilarious

Exactly I don't think he's even trading any more. He also sold my parents and in-laws an endowment but their mortgages were really small.

 

[strawberry blonde]

The bloke who sold us the endowment tried to get us to take out even more and in return we could have a free umbrella!!!

 

[joolz1910]

The bloke who sold us the endowment tried to get us to take out even more and in return we could have a free umbrella!!!

That would have been worth it!

 

[strawberry blonde]

I wish I had taken the umbrella because if I met him again I know exactly where I would be shoving it

 

[joolz1910]

I wish I had taken the umbrella because if I met him again I know exactly where I would be shoving it

 

[orlandothebeagle]

I wish I had taken the umbrella because if I met him again I know exactly where I would be shoving it