UK ENDOWMENT MISS SELLING ADVICE

Over 6 million current insurance policies are in danger of falling short of the sum required to pay off the policyholder's loan due to endowment miss selling. The history of this mortgage shortfall problem lies in the nineteen eighties at which time insurers started to sell policies of insurance, usually for a twenty five year term, with a maturity value which was anticipated would pay off the amount of the loan used to buy the property. The calculations used at the time were based on the then prevalent high interest rates and were dependent on interest rates remaining high however during the nineteen nineties interest rates fell well below the minimum 6% rate that was necessary to sustain the fund. Many policies will now have a maturity value that will fall short of the sum required to pay off the borrowing and will justify an endowment complaint to claim compensation for loss.

The Financial Services Authority have now imposed a regime on the insurance companies which requires them to calculate the value of each independent client’s funds every two years and to advise the client of whether or not there is an estimated mortgage shortfall in order to facilitate claims for an endowment miss selling application. Insurers are required to send out a standardised letter coloured red, amber or green dependent on the status of the fund which indicates whether the endowment is on track to re-pay the mortgage, or whether it is heading for a shortfall.

• A green letter indicates that the fund is currently on track to re-pay the loan however, the situation may change in the future and a green letter is no guarantee of continuing stability as the value of the insurance companies investments must continue to increase by at least 6% a year to avoid falling into arrears.
• An amber letter indicates that there is significant risk that the fund will not pay off the loan and whilst this letter does not entitle the policy holder to claim compensation it is an indicator that there should be a careful watch on the fund and in particular the date should be diarised forward for two years to ensure that enquiries are made should the next assessment letter be undelivered or lost in the post.
• A red letter signifies that there is a high risk of a mortgage shortfall at the end of the term and entitles the policy holder to make an application for compensation. Time limits apply with the most usual period being three years from the date of receipt of a red letter. There are some circumstances that may increase this period and not all insurance companies reject an out of time application. Failing to abide by the time limits may mean that the opportunity to claim compensation is lost forever.

We represent an independent network of qualified actuaries, lawyers, financial advisers and insurance experts who work together as a specialist team to settle endowment miss selling claims against life companies, solicitors and insurance brokers. Our professionals only deal with mortgage compensation claims on a risk free no win no fee basis and if the complaint is unsuccessful for any reason they will make no charge whatsoever. You will not be asked to fund or finance your application in any respect and you will not have to buy insurance or take out any loans. Our clients never pay any charges unless the claim is settled successfully. If you would like to speak to a specialist just complete the contact form or call the helpline and one of our experts will discuss your potential claim without any further obligation.