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ENDOWMENT MISSELLING

We deal with endowment misselling claims on a no win no fee basis and if the complaint is unsuccessful we will not make any charge to you. Our claims are completely risk free and you will not have to 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.

In the late 1980s and the earlier part of the 1990s, this type of mortgage became very popular and is an interest only loan secured by a mortgage of the property alongside an investment by the insurance company in the Stock Market being the monthly premiums paid on the policy of insurance which are in due course, at maturity of the policy, used to pay off the loan. At the time, this method of repayment seemed an attractive option to many homeowners and because of tax advantages appeared to save money on an straight repayment loan.

Financial advisors saw these mortgages as a positive alternative to traditional repayment mortgages with the added benefit, from their point of view, that they could earn a substantial sales commission on the policy. The policy was also favoured because it appeared to serve the customer by exploiting the benefits of what was then current tax relief. Unfortunately, numerous problems arose from the potential risks of the policy that were not properly considered at the time. As a result the mortgage was often not adequately explained to the customer and millions of people entered a binding financial contract without realising its risks.

By 1988 the vast majority of new mortgages were linked to insurance policies and at that time it appeared as though the investment would, in many cases, not only pay off the capital, but also leave a good surplus amount for the customer to spend. However the stock market failed to live up to expectations resulting in potential shortfalls on most policies that would not in many cases even repay the amount that the customer had paid in instalments let alone repay the mortgage borrowing or pay a lump sum in addition.

Half a million people have been compensated so far and there are millions more people who suffer from the consequences and shortfalls of the plan that are yet to make a claim for compensation. We will give guidance and advice on what steps can be taken to recover financial losses no charge.

The quick sale of these insurance based mortgages to people who were either not told the risks, or were unsuited to the policy, left many people confused and in financial difficulty. This endowment misselling has made banks rethink their lending schemes and change the way they assess a potential borrowers’ financial position. By the end of 2003 the Financial Services Authority (FSA) and consumer groups began to collate evidence which all pointed to a lack of adequate information or advice given out to people when they bought their endowment plans. The issue of misselling of endowment mortgages has become a predominant factor in changing customer standards relating to financial services in the UK.

We are experienced in all aspects of these claims and are able to give free advice with no obligation. If after talking to us you decide to proceed no further with a potential claim then you are quite at liberty to do so and you will owe us nothing for our initial advice.

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