Endowment Policy.

[ummmm]

Got a letter from the endowment company regarding the shortfall in our endowment policy. With it is a letter from The Money Advice Service about compensation and how much we're due.

I cannot find where it says how this compensation is paid. The advice is to use it to reduce the amount we owe, which we'll do, but does anyone have an idea how we do this?

Lines are open 9-5...I can't phone as the policy is in OH name.

[Dodger666]

Have a look at this:-

https://www.moneyadviceservice.org.uk/en/articles/mis-sold-endowment-mortgages

[ummmm]

I've had a look, Dodger, they've said we're due compensation but I can't find where or how to claim this compensation.

[ubasses]

If they have your full Bank details, which they will if you are paying the policy by direct debit, it will probably be paid direct into your Bank Account. If not they will usually send a cheque. You then need to speak to your Mortgage provider and ask them how to go about paying a chunk of the Mortgage off. If you are with one of the mainstream Banks you should be able to pay it straight into the Mortgage account, but check with them first to ensure you will not trigger any charges by an early repayment. If so hold on to it in a savings account until the next window of opportunity comes up.
Sorry not to be precise but there are so many different types of Policies and Mortgages in the marketplace all with different rules.

[DTCwordfan]

Usually goes straight to your current account if you have provided that. Yje advice about reducing your mortgage is a good one if you have no other debts, otherwise pay those down first as the interest rates on your cards etc is higher.

[ummmm]

Cheers for that. I'll keep an eye on the bank statements.

[ummmm]

We have no debts, DT.

[stob]

Hi ummmm, not sure if you are aware of this, when we had our letter regarding our shortfall, we were able to transfer to a straight repayment mortgage, using the 'compensation' to put us back to where we would have been if we had just taken out a straight repayment in the first place. If you are able ( financially ) you could keep the endowment going as well, so when it matures it is all yours. Hope this makes some sort of sense.

[ummmm]

Yes, Stob, that's in the letter and part of the compensation is £200 to convert our mortgage if we chose to.

It's a pain in the backside. We only have 4 years left to go.

[DTCwordfan]

then pay down the mortgage......

[ummmm]

That's the plan, DT, now just have to wait and see what form this compensation comes in.

[Peter Pedant]

erm I think I got a cheque ( £625)
the last few came in at 2/3 the advertised final price

I am amazed there are some still out there

[ummmm]

So you think we'll get a chx?