Endowment payout

[z4me]

Would welcome any comments or advice on the following scenario. Took out a repayment mortgage for £22.5k with Northern Rock in Sept 1985. Around a year later I received a mailshot from Equity & Law, Northern Rock had obviously passed on my details as the mailshot included my mortgage details, pushing their endowment policy.

Course, in those days the projects, as we now know, were in cloud-cuckoo land. As an example, the projected returns were a minimum of £25,830 and a max of £50,110!!

It's maturing in September, returning roughly £18,300.



Now, I've still got that original mailshot letter, and these were some of the statements in it that really swung the decision to go for the endowment policy in the first place



head of the mailshot


YOUR DOUBLE OPPORTUNITY

Your mortgage repaid and extra cash for you

and at the end

So claim your DOUBLE OPPORTUNITY today - the prospect of extra cash for you as well as your mortgage repaid


To me , that suggests that there's no doubt that the mortgage will be repaid , it's the excess amount that's in doubt.

There's also this statement in it too :

This illustration must be read in conjunction with the Plan booklet

I don't have that booklet unfortunately, so unsure what it said exactly.


Suppose the question I'm really posing is, do I have a case against the company (now Friends Life) for not paying at least the amount of the mortgage, or am I stuffed by the missing mystery booklet?


PS, don't think it was mis-sold (too late anyway), just hasn't returned what appears to me to have been promised.

[Zingari]

Have the included the 'final bonus' figure in the amount? Doubtful they will have as it's not normal to disclose it beforehand but I would suggest you can bank on something close to their minimum figure.

I have a Prudential endowment which I took to the Ombudsman who confirmed mine was mis-sold and I was awarded £1300 in 'compensation'. I have however allowed the policy to run with the monthly payments and mine is just on track to repay the initial mortgage outlay even though have paid off my mortgage. So (hopefully) I'm looking for a nice lump sum in 18 months.

When I was weighing up the options of cashing it in now given that it has a guaranteed value I asked for a projected final bonus based on monthly payments to maturity. They wouldn't tell me.

End of the day its not been a bad 'savings' plan with life insurance for a small monthly outlay.

I had another one that was sh0ite and cashed that in as it was going nowhere years ago - about the time I started overpaying on the capital mortgage.

[z4me]

Yeah, they've included final bonuses in that figure, and it has done better than earlier forecasts which was around £16.5k. Agreed that it could've been an awful lot worse in comparison to some others, but it could've been better too, and those headline statements in the original mailshot are very misleading.