ENDOWMENT POLICY SHORTFALL

We deal with endowment policy shortfall claims on a no win no fee basis and if the complaint is unsuccessful we will not make any charge to you. Our endowment compensation claims are completely risk free and you will not have to fund or pay for any expenses during the course of the claim. If you would like free advice on the telephone, without obligation, just complete the contact form.

We are a founding member of the Claims Standards Council which is independent from the claims industry and seeks to ensure that that its members deal with consumers on the basis of decency, probity and fairness by :-

• vetting individuals and organisations seeking membership
• compliance with a transparent, thorough, end-to-end process for handing claims
• operating independent complaints and discipline arrangements

How does it happen?

Your policy was meant to build up a level of value such that at the end of the agreed term the value would be enough to repay the loan that was used to buy the property. If the value of the fund is less than the amount of the loan then you have a "shortfall". Unfortunately, this can be many thousands of pounds and you would be required to repay this amount to the mortgage provider in some other way.

The fund into which you paid your monthly premiums was designed to grow by having the premiums invested by the insurance company but if the policy has not grown at the rate they anticipated then there will not be sufficient to pay off the loan.

How will I know if there will not be enough to pay off the loan?

Every insurance company is required to send you letters at certain intervals called "re-projection letters". You will have received several letters from your insurance company and they will quote different projected growth rates for your investment; they will normally quote what the projected value would be at the end of the mortgage term using growth rates of 4%, 6% and 8% but the quoted growth rates can vary between different insurance companies.

The re-projection letters are to give you an indication of the fund during the next few years; if this value is less that the amount of the mortgage then you have an endowment policy shortfall that needs to be looked at. The reprojection letters are graded as follows:

• RED - a red re-projection letter warns consumers that there is a high risk the fund won't pay off the target loan amount.
• AMBER - an amber re-projection letter warns consumers there is a risk the fund won't pay off the target loan amount.
• GREEN - a green re-projection letter informs consumers the fund is on track to pay off the target loan amount.

Certain time limits apply for action to be taken if applicable; do not ignore the letter; we are here to help. Many hundreds of thousands of insurance products are projected or confirmed to be to low in value to repay the target amount. An endowment mortgage shortfall is a serious issue and needs to be reviewed now.