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Useless endowment mortgages - and SEDOL ??


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I've decided enough is enough... our pathetic Endowment Mortgage is not worth the paper it is written on so I'm getting rid :evil:


I rang up the company and got their equally pathetic surrender value :evil: but this amount does also depend on the value of our units on the day that they actually click the 'surrender' button. Probably in their best interest to wait for a low day then :roll:


The only place I can monitor the price DROPS seems to be via their own website but I want to check it elsewhere too just to make sure they are not pulling a fast one (which of course they probably are). Seems that I can only get rid of it through them too :cry:


My Endowment plan (according to 'their' site) has a SEDOL[b/] code of 609991[/b] but when I type it into the stock exchange search field it doesn't exist ....


Anyone know what I may have done wrong... other than signing up to con of having a 'wonderful' endowment mortgage in the first place of course :P

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What does that mean... sorry :oops:


We've got another 7 years left on it and it's lost ?500 in the last week alone (according to the figures on THEIR website). It worries me that in 7 years time it will be worth even less than it is now... hence my idea of cutting our losses now.


It was supposed to easily cover our ?57k mortgage PLUS it was supposed to give us a lot extra to have some fun with but is now only running at about ?13k ... and falling daily :shock:


If we make it a paid up policy now like you suggest and we then don't make any other payments until it matures surely we could lose even more or finish up with nothing the way things are going :cry:


Like I said I don't really understand it :oops:

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It was supposed to easily cover our ?57k mortgage PLUS it was supposed to give us a lot extra to have some fun with but is now only running at about ?13k ... and falling daily Shocked


Sounds like endowment mis-selling ,in which case you could have a claim.Take a look here:


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I thought most people moved away from endowment mortgages several years ago. Mine actually covered the mortgage and gave me enough for a nice holiday but that was only because we never dropped our payments when rates went down. Had we not done that over 25 years, we would have been hugely short.


Bill :)

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I'd say it's a very bad time to surrender an endowment, the value of the investments it's based on is closely linked to the stock market. While it's likely that things will get worse before they get better, I'd say that with 7 years to run there's almost certain to be a point in time over that period when the value is significantly higher than it is now.


For any kind of Unit Trust backed endowment there's even an argument that bad times like these in the middle of the policies life are a good thing in the long run. It works like this:- If your monthly payment is buying "units" in an investment, then when the values are down you are actually getting more "units" per pound spent than you would if the values had held up. Then, if the values recover towards the end of the policy, you end up cashing in more units at whatever the final price per unit is - and hence you receive a bigger lump of money.


The same argument goes for freezing the policy as has been suggested. Today you own "x" units at a value of "y" pounds each, if you freeze the policy and cash it in later you'll be selling "x" units at their value on the day of "z" pounds. At some point in the next 7 years "z" is almost bound to be bigger than "y".


It's also usually better to sell an endowment on, rather than surrender it. If you do a google search you'll find any number of companies who'll offer to by it from you.


If you get some quotes from these companies you could take the size of the difference between the surrender value you've been given and what they're offering as a sort of measurement of what they, as professionals in this field, consider to be the likelyhood of "z" becoming bigger than "y". They're not likely to offer much more than the surrender value unless they think that it's a good bet over the time it has left to run.


Important to get some professional financial advice, though. You MIGHT have a case for mis-selling, but you certainly need advice on the best way forward - which will depend on exactly what investments your endowment is based on.

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I was advised by my Dad who was an Chartered Accountant so I wouldn't have wanted to use the old miss-sell on him. He died before my policy matured anyway. Some people will go to any lengths. :wink: But he did give me his commission :D


Mind you like Bill when I took my endowment out it just over 25 years ago, life and the universe were totally different, plus they used to explain things clearly about the risks. Just imagine if they offered good financial advice these days we'd all be quids in.


Were you advised clearly Dissy?

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plus they used to explain things clearly about the risks.


Not sure they did Geoff. My understanding was that they pushed endowments like mad....in order to earn sales commission.Indeed the sales pitch was based on the assumption that not only would the endowment pay off the capital of the loan AND provide a lump sum of money to be spent as one likes...and "glamorous" things were mentioned, cars, holidays etc.

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I'm talking about twenty five plus years ago before the salesmen without integrity took over.


I was certainly told about the risks and issues. But like most things if you don't realise that you have to ask you'll be taken to the clearners. One of my early ISAs went that way, but I'm holding out for it to bounce back in 2018 :twisted:


Mind you my endowment did have life cover to the value of the predicted maturity value so if I had snuffed it my spouse would have got double value for money :D

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Sounds like endowment mis-selling ,in which case you could have a claim.


I worked for a local estate agency in the late 80's as a mortgage advisor & yes, the income was generated from the sale of endowment policies but there's a couple of things you need to bear in mind:

1/ at this time they did appear to be the most cost effective way of paying the mortgage; I took one in 1988 & a second one when I moved two years later. Most of my collegues did the same

2/ the customers were explained the differences between a repayment & endowment mortgage AND that the endowment was not guaranteed but 99% said they wanted an endowment BEFORE they were given the info. This translated into 99% after the info, also.

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  • 2 weeks later...

:lol::lol: Probably right there Peter. :oops:


But Byrdy is closer... whilst I have been waiting for Phoenix Life to send me some more information my pathetic little endowment has lost another ?800 in less than 2 weeks :shock: :evil


That's over ?1500 lost in 37 days :shock:


I wish the ********* that conned us into signing for it were still trading :evil: From reading all the links and info posted on here we definately seem to have been mis-sold our endowment :evil:


We all learn by our mistakes I guess... but sometomes it's too late :oops:


Anyway wether we surrender or freeze it can apparently take a couple of months to do.... so by then it will probably be worth nothing at all :shock:

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