Chesterfield Online Forum

General Category => General Discussion => Topic started by: Fly on July 13, 2012, 07:52:52 PM

Title: Endowment shortfalls :-(
Post by: Fly on July 13, 2012, 07:52:52 PM
Not mentioning any names. It's their choice to post if they want.

Was this just another mortgage scheme to screw people out of their money ?
My mum got sod all returns after being in a endowment mortgage situation.

Debate.
Title: Re: Endowment shortfalls :-(
Post by: chesterfieldchris on July 13, 2012, 08:15:06 PM
POST DELETED AT USER'S REQUEST
Title: Re: Endowment shortfalls :-(
Post by: Fly on July 13, 2012, 08:27:38 PM
Just to clarify a point Cchris.
Mum and dad took this out to buy their council house.
A few years before it was due to end, dad died.
Mum got the house paid for, but the amount of cash she received was diabolical !
No where near what they had been told they 'could' have received.
Yes, we all know investments can go down, as well as up, but why do so many appear to go down ?
Title: Re: Endowment shortfalls :-(
Post by: Slacker on July 13, 2012, 09:02:45 PM
Friday the 13th is a good day to get news about endowment!
Title: Re: Endowment shortfalls :-(
Post by: chesterfieldchris on July 13, 2012, 09:05:05 PM
POST DELETED AT USER'S REQUEST
Title: Re: Endowment shortfalls :-(
Post by: Slacker on July 13, 2012, 09:23:24 PM
"It can make up to 6 times the some assured" was what the Norwich Union were saying at the time when I took it out. Of course it is "up to" but a long way off only being about three quarters of the sum assured
Title: Re: Endowment shortfalls :-(
Post by: chesterfieldchris on July 13, 2012, 10:14:03 PM
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Title: Re: Endowment shortfalls :-(
Post by: Slacker on July 13, 2012, 10:16:33 PM
Final payment tomorrow
Title: Re: Endowment shortfalls :-(
Post by: Scimitar on July 13, 2012, 10:22:55 PM
From what I remember,an Endowment Mortgage was sold on the terms that if the mortgage holder died,at any time within the term of the mortgage, it was paid off,full stop.
You only paid interest on the mortgage, and paid no capital off - i.e. borrow 50K over 25 yrs and after 25 yrs you still owe 50K,but the endowment policy would repay the mortgage,because it was invested wisely by Insurance companies  who knew what they were doing and would move your policy around to find the best deals on a daily basis on the stock market.
So, for example, 10yrs in to the mortgage, and a partner dies, the mortgage is paid off-irrespective of what "your Endowment Policy" has made. Covered by those who were still paying in to similar schemes, for the full 25 yrs.
If you went for the full 25yrs you were promised magnificent bonuses over and beyond your mortgage debt, in other words it will easily repay your debt.
I never sold mortgages, I wasn't that clever,but had to deal with enquiries on the subject yonks ago, in a former occupation.
It was a popular scheme,and I reckon nothing wrong with it at the time, and if it paid the mortgage off, that was good.
you wont find a deal like that today though :(
Title: Re: Endowment shortfalls :-(
Post by: chesterfieldchris on July 13, 2012, 10:37:59 PM
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Title: Re: Endowment shortfalls :-(
Post by: Slacker on July 14, 2012, 08:10:00 AM
If I don't last the next month out I'll be laughing (financially speaking)
Title: Re: Endowment shortfalls :-(
Post by: k4blades on July 14, 2012, 08:52:59 AM
Coincidentally I was talking to a couple the other day who lost £60K through their endowment.
Title: Re: Endowment shortfalls :-(
Post by: therealjr on July 14, 2012, 05:06:03 PM
If I don't last the next month out I'll be laughing (financially speaking)
Well YOU won't, but you know a woman who will!!!!!