This is actually an interest-only mortgage that is linked to an investme nt product. Millions of these were sold across the UK and many, unfortunately, fell far short of the return expected of them.
It is likely that at the time you were sold the endowment mortgage, you were told that the endowment policy will pay off at the end of its term and not only that, you would get an additional lump sum payment on top. Unfortunately for millions of customers, not only was there no lump sum payment, the endowment was not enough to pay off the mortgage.
Mis-sold Endowment Mortgages
Your advisor should have warned you that the endowment may not grow enough for you to be able to pay off your mortgage or provide an additional lump sum by the end of the term of the policy. You should have been provided with information that was clear, fair and not misleading.
Note: you can only complain about how your endowment mortgage was sold to you. You cannot complain about the performance of your investment.
Could you have a claim?
Holders of endowment mortgages were told that they had to make their complaint within 3 years of receiving their first warning letter from the company that sold the policy or within 6 months of receiving their second warning letter, whichever was received last. If you have not received one of these letters, your claim is unlikely to be time-barred and you could have a claim.
Even if your policy has matured or you have surrendered it, you can still complain if your policy was originally mis-sold to you and you have suffered any loss as a result of this.
Even if the company that sold you the Endowment Mortgage is no longer in business, the Financial Services Compensation Scheme (FSCS) may cover you. This scheme was set up to provide compensation for customers of companies who cannot pay compensation. If your policy was taken out on or after 28th August 1988, then you may be covered by this scheme.
What Can You Do To Reclaim Mis-Sold Endowments?
You can either, claim on your own or you can use a specialist like CMP to help. We can’t guarantee a pay-out for you or get more money than you would if you claim on your own, or that we can handle the claim faster.
What we can guarantee is a professional, straight forward, honest service which is hassle free for you. We will use our knowledge and specific expertise to ensure your claim has the best possible chance of being successful. For our contact details, click here and get in touch with us now.
Who Pays The Compensation?
Most of the cases we represent are presented to the Financial Services Compensation Scheme (FSCS) in a bid to reclaim money lost by investors who suffered negligent advice or were unaware of the full facts before making their investment.
The FSCS is a free service, therefore you can make a claim for compensation yourself.
The FSCS protects consumers when financial services firms fail or go bust. It’s the compensation scheme for customers of UK authorised financial services firms and is often referred to as the fund of last resort for individual investors.
FSCS protects the following:
- Investment business,
- Home finance (for business from 31 October 2004),
- Insurance policies, and
- Insurance broking for business from 14 January 2005. We also protect connected travel insurance where companies such as travel firms and holiday providers sell the policy alongside a holiday or other related travel for business from 1 January 2009
The FSCS has set compensation limits dependent on when the firm you are claiming against was declared as in default:
- Up to £85,000 for firms which failed after 1st April 2019
- Up to £50,000 for firms which failed between 1st January 2010 – 31st March 2019
- Up to £48,000 for firms which failed prior to 1st January 2010
What If The Firm Is Still Trading?
If the broker or your advisor is still trading any complaint must be made directly to the firm. There are regulatory procedures and timeframes the firm must adhere to when dealing with any complaint.
If you are unhappy with the final decision your complaint can be referred to the Financial Ombudsman Service (FOS).
If you are unsure whether you have valid reasons for a complaint to the firm call a specialist today and we will quickly establish if there is basis for a claim. For contact information please click here