From: "Alex Guess" 
Newsgroups: uk.finance
Subject: Re: mis-sold endowment mortage compensation reasonable ?
Date: Sun, 9 Nov 2003 16:47:41 -0000


> Are you sure that is what they have not offered? Although having only paid
> 12k of a 30k mortgage in  15 years is not ideal. I wouldn't imagine it is
> *that* far away from what it should be.
>
> Seems strange that is she had a repayment for 2 years, she then switched
the
> mortgage to a 25 year endowment. Why not a 23 year endowment? (Assuming
the
> original term was 25)
>
> Than in itself is terms for complaint.
>
> What was the original term before switching? I have seen it argued that if
> the mortgage term was extended and that was not wanted as retirement was
> earlier that they then need to put her in a situation that she would have
> been in for her target retirement age.
>
> -- 

I only had a rough guide this morning as I wanted to get some background
information going before I saw her this evening, but yes I am fairly sure
all those figures are correct - I will see the actual documents this evening
though.

Basically she seems to have been totally sold on the benefits of an edowment
mortgage and how at the end of it she will actually have n thousands more
pounds to play around with on top of paying for the mortgage.  She says from
what they told her at the time she would be stupid not to stop her repayment
mortgage and switch to a new endowment mortgage.  At the time she wouldn't
have had much money after recently seperating so I expect that she would
have taken it over 25 years to keep similar low monthly payments.  My mother
comes from an era where you just did what you were advised to do by the
first person that came along, remembering of course that her husband would
have delt with all these matters.

I will investigate more about the previous mortgage and hopefully get some
idea of where she would be at if she had continued with the original
repayment one.  When I have these calculations where do I go next?  Back to
the mortgage lender/endowment provider who made the offer or off to the
ombudsman?  I would want to take the easiest route and fastest for her even
if this doesn't mean she ends up with the most money as once again she's
going through another seperation :/ hence why I'm now looking into all her
finances.

Regards,
Alex