MORTGAGE ENDOWMENT CLAIMS ADVICE

We are a specialist company that provides advice and representation in endowment claims. We use a no win no fee scheme to ensure that there is no risk and we guarantee that there is no financial layout as the claim proceeds. If the endowment complaint is unsuccessful we will not make any charge whatsoever. Our clients never pay any charges unless the claim is settled successfully. We offer the opportunity to take claims advice from a specialist at no charge and with no further obligation, and if you decide to proceed no further then we will not charge you for the initial free advice. If you would like to take advantage of our experts just complete the contact form and a specialist will phone you as soon as possible.

The mechanism by which endowment mortgages operate is that the principal sum intended to be used to purchase property is lent to the borrower usually by a building society in order to facilitate the actual purchase. Once the loan to buy the property has been arranged the purchaser must then consider how to repay the loan. There are two main methods used to satisfy lenders, the first one being a straight repayment mortgage whereby the borrower repays the lender a monthly sum which covers both repayments of the principal sum plus accrued interest which may be tied into bank base rates or may be at a fixed interest rate. The second method of repayment involves the borrower paying interest only, to the lender, who agrees to defer payment of the principal sum until such time as a life insurance policy, taken out by the borrower, matures usually with a term of 25 years. The success of this second method relies on the insurance company investing the monthly premiums received in the stock market. How well the insurance company performs in its investment determines the value of the final fund and whether it will be enough to discharge the loan after 25 years. Clearly if an insurance company has not guaranteed that the returns will cover the loan repayment then this method of repayment can be a risky business as to whether the fund will be sufficient.

The root of this problem lies in the fact that many people were not warned that this method of repayment carried some risks and some were sold totally inappropriate policies. Others were deliberately misled by the policy seller resulting in substantial financial losses. Once it has been established that a policy was miss sold under the current financial regulators guidelines then the seller is legally bound to compensate the buyer. If the seller refuses to recognise that there has been miss selling them there is an appeal procedure. Losses are calculated by comparing the endowment mortgage with a straight repayment mortgage and endowment compensation is awarded that would be sufficient to ensure that the borrower could transfer to a straight repayment mortgage without showing any financial losses.