Endowment mortgages

Dirty Harry

Advisor to the Owner
Not the most riveting of threads, but I'm wondering if any posters have currently, or in the past, had an endowment mortgage? Our first house was only 35000 quid 24 years ago. We opted for the endowment type mortgage. We have since moved house a few times and have always opted for the straight repayment mortgages on subsequent moves. For 24 years we have been receiving 'Amber' or 'red' warning letters telling us the endowment is not performing well enough to meet the 35000 quid target. Today, for the first time in 24 years, we received a letter saying 'green' alert, your endowment is now on track to meet its target and give you a surplus. Hopefully next year we might end up a few bob up on the deal once it matures and is cashed in. Have any posters done well with endowment mortgages or have any had a bit of a 'mare' with one. Just interested, like.
 

LostinSpace

PNE Exile
Patron
You did right switching to repayment mortgages. Very nice to have a nest egg when the endowment matures. Are you still using it for part of the mortgage or will it all be yours?

I remember going for my first mortgage and insisting that I didn’t want an endowment mortgage. In those days you had to personally meet the branch manager and he kept insisting I was missing out on a fantastic opportunity. After about an hour I told him enough was enough, if he wasn’t going to give the repayment mortgage I wanted, I’d try elsewhere and got up to leave. He gave me the repayment mortgage. 😀

They got huge commission for selling endowments, how they got away with it was a disgrace.
 
OP
Dirty Harry

Dirty Harry

Advisor to the Owner
You did right switching to repayment mortgages. Very nice to have a nest egg when the endowment matures. Are you still using it for part of the mortgage or will it all be yours?

I remember going for my first mortgage and insisting that I didn’t want an endowment mortgage. In those days you had to personally meet the branch manager and he kept insisting I was missing out on a fantastic opportunity. After about an hour I told him enough was enough, if he wasn’t going to give the repayment mortgage I wanted, I’d try elsewhere and got up to leave. He gave me the repayment mortgage. 😀

They got huge commission for selling endowments, how they got away with it was a disgrace.
Aye, we're using it to pay part of the mortgage off. We got a few grand compensation for it many years ago as we felt we were mis-sold it and the ombudsman agreed. There were a lot of commission hungry salesmen pushing endowments in the 1990s and a lot of folk were compensated.
 

Regardless

Forum Patron
Patron
Is the letter saying that all of a sudden the value of the endowment is actually more than £35k+interest ? That would be amazing if so.
 
OP
Dirty Harry

Dirty Harry

Advisor to the Owner
Is the letter saying that all of a sudden the value of the endowment is actually more than £35k+interest ? That would be amazing if so.
Aye, basically, it's previously been saying the is a high risk of shortfall, until today, when the annual statement said it is on course to meet, and go beyond, its 35k target. It suggested there could be 36k or, if investments do well, 39k
 

No Danger

Forum Patron
Patron
In 1983 I bought a house under a shared ownership scheme on a 60/40 basis (part owner was Central Lancashire New Town followed by a housing association). In 1987 I bought the remaining 40% and switched to an endowment mortgage. The mortgage advisor at The Halifax led me to believe that a lump sum was a certainty and I would be daft to get any other type. That of course was untrue.
The mortgage was due to end in 2008. Probably 2/3 years before the end of the mortgage period it became clear that there would be inadequate funds to cover the repayment. However I submitted a claim for miss selling and was compensated for the shortfall to that point. Even then I had to increase my payments slightly to save the policy falling into arrears again.
 

Regardless

Forum Patron
Patron
Aye, basically, it's previously been saying the is a high risk of shortfall, until today, when the annual statement said it is on course to meet, and go beyond, its 35k target. It suggested there could be 36k or, if investments do well, 39k
Wonder where the investment went so well - and if lots of people are getting the same good news.
Our endowment had a big shortfall But long previously we had gone to a repayment mortgage.
 
OP
Dirty Harry

Dirty Harry

Advisor to the Owner
Wonder where the investment went so well - and if lots of people are getting the same good news.
Our endowment had a big shortfall But long previously we had gone to a repayment mortgage.
No idea mate, they've obviously invested well somewhere recently.
 

Regardless

Forum Patron
Patron
There are some disadvantages though, like having to get an extra high toilet, so your plonker doesn't dangle in the water when having a dump.
Much better than the old days though. You must have noticed how nowadays they’ve installed lots of low-level urinals in public toilets that are especially designed for those of us with this characteristic.

Top-tip: these urinals are pretty handy for your kids too
 

Karcist

Manager
There was a time when endowments were indeed producing great returns as the Stock Market kept rising. It really was, for a time, where the money was. Some people did actually do very well.

The problem was....as they say.. `Past returns are no indicator of future performance`.

......and the selling continued even when those in the know, knew, that it was over.
 
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