BS: End Mortgage Shortfall anyone claimed?

Subject: BS: End Mortgage Shortfall anyone claimed?
From: Alan Day
Date: 05 Dec 06 - 02:03 PM

Many of us were wrongly advised to have an Endownment Mortgage and are now suffering a shortfall.In my case I only went to the Bank for a loan and the Bank Manager advised that I stop the Mortgage that I had and get an endownment to include the extra money I required.My mortgage is now worth what my original mortgage was.I am paying it for four years longer that with my original mortgage and I have a shortfall.I did not take a recording of what my Bank Manager advised me to do.There is nothing in writing apart from the agreement.I am being inundated with companies offering to help me with this situation. Has anyone followed this up and had any success?
I would be grateful for your assistance.
Al

Subject: RE: BS: End Mortgage Shortfall anyone claimed?
From: Peace
Date: 05 Dec 06 - 03:17 PM

www.fsa.gov.uk/consumer/pdfs/endowment_complaints.pdf

www.fsa.gov.uk/consumer/01_WARNINGS/endowments/mn_endowment.html

www.financial-ombudsman.org.uk/faq/mortgage.htm


Sites for you to read.

Subject: RE: BS: End Mortgage Shortfall anyone claimed?
From: pdq
Date: 05 Dec 06 - 04:08 PM

Loans are a product just as soap, cars or cornflakes.

It is the job as well as the duty of the consumer to buy the product that best suits their needs.

A good session with an estate planner (US term) will do wonders.

Subject: RE: BS: End Mortgage Shortfall anyone claimed?
From: SINSULL
Date: 05 Dec 06 - 08:12 PM

Alan,
What is an Endowment Mortgage? We have a product here called a reverse mortgage. They pay you but you don't lose your home.
Similar?
SINS

Subject: RE: BS: End Mortgage Shortfall anyone claimed?
From: The Fooles Troupe
Date: 05 Dec 06 - 09:02 PM

"We have a product here called a reverse mortgage. They pay you but you don't lose your home."

Well, actually... only when you die - or at least, then your kids lose it...

Subject: RE: BS: End Mortgage Shortfall anyone claimed?
From: TRUBRIT
Date: 05 Dec 06 - 09:23 PM

As I understand it the endowment mortgage is a product that does not exist here in the US. The idea was that one would have an amount of cash coming back to you at the point the mortgage was actually paid (hence - endowment.....). My sister in the UK was similarly advised by her bank manager - they paid their mortgage off and received no lump sum but were pretty happy not to owe money.......

I like good old fixed rate mortgages with lovely regular principle reductions -- much safer. Be wary of ARMs masquerading as good deals...

Subject: RE: BS: End Mortgage Shortfall anyone claimed?
From: Long Firm Freddie
Date: 06 Dec 06 - 12:52 AM

Another good website is for Which, the consumer group: Which?

The site has a letter generator which will get you started.

You don't have to use a complaint handler if you don't want to; they'll take a substantial chunk of your compensation just for writing a few letters, and they won't get you any more compensation than if you acted for yourself, as there are strict guidelines for calculating it.

LFF

Subject: RE: BS: End Mortgage Shortfall anyone claimed?
From: Noreen
Date: 06 Dec 06 - 03:50 AM

Yes Alan, I claimed and am glad I did. Just write to your lender and they will send you the forms to fill in- as LFF says, don't bother with claim handlers, it isn't necessary.

I didn't have proof of what was advised at the time of taking out the endowment, but all lenders assumed at the time that the debt would be paid off and even provide an extra lump sum for cruises and so on... All I needed to fill in on the form was details as I remembered them. Lenders are aware of errors that were made at the time and are generally keen to settle up.

Subject: RE: BS: End Mortgage Shortfall anyone claimed?
From: Alan Day
Date: 06 Dec 06 - 04:10 AM

Did you get your complete amount Noreen of the Mortgage value ?
I have those forms you refer to and I shall have a go.I also have the original mortgage details that I was told to switch from.What is the procedure after you send off the forms?
The Bank refused my claim to them by the way.
Thanks all for your advice.
Al

Subject: RE: BS: End Mortgage Shortfall anyone claimed?
From: Divis Sweeney
Date: 06 Dec 06 - 04:20 AM

I took out an endowment mortgage in 1987. Got letter last year to say there was a short fall expected at end of term and could possibly still owe 6,000.
I made a claim and explained the guy who advised me (from their company) said it could be cleared much earlier than the 25 year term.
They accepted my claim and repaid me the full amount as if it had been a repayment only mortgage. I received what amounted to half the full amount I borrowed in 1987. I gave it all to building society and now have a repayment only mortgage.Which is pittance.
PM if I can help.
DS

Subject: RE: BS: End Mortgage Shortfall anyone claimed?
From: Mr Red
Date: 06 Dec 06 - 06:08 AM

FWIW an endowment mortgage is where you get a loan from a loan company and enter a contract to pay into a money saving scheme which pays interest but effectively pays-off the mortgage at the ned of the term. which if the interest rates are low enough no-one sees the gap - or there is money left out of the savings.

Basically the savings scheme paid the advisor plenty of commision.

says it all really - I had to argue with lenders that I didn't want one - they tried to make me feel stupid. They did not tell me how much their commision was for either option. I walked out several times.

Subject: RE: BS: End Mortgage Shortfall anyone claimed?
From: Teribus
Date: 06 Dec 06 - 06:23 AM

To answer Sinsull's question with an endowment mortgage usual term in the UK is 25 years you pay of the mortgage at a slightly higher sum plus, in my own case due to my job at the time, an insurance premium.

In my case it worked out pretty well, I took the endowment mortgage out in 1974, mortgage was paid off in 1999 with an endowment pay out of just over £94,000

Subject: RE: BS: End Mortgage Shortfall anyone claimed?
From: Grab
Date: 06 Dec 06 - 07:46 AM

If you're only just thinking about this, I have to ask - have you not read a paper for the last 5 years (and more like 10)? It's been all over the papers everywhere you cared to look.

If you're only just getting round to it now, it's quite likely that you'll be falling foul of the time criteria (three years to complain about it, starting from when you should have noticed that it wasn't going to be covered). Which? reports have had a few people where that's happened to them. Which? of course didn't like that at all, but the banks were within their rights, and IMO there really wasn't anything you could say except "didn't you read the letters?" Might not be the same in your situation, of course, but if you're only just starting to worry about an endowment shortfall now, I'm afraid you really haven't been keeping your eye on the ball.

Graham.