An Endowment is a savings plan designed to mature at the same time as your interest only mortgage. It was designed to provide sufficient funds at maturity to repay your mortgage in full.

There were two main types of Endowments, a With Profits Policy or a more risky Unit Linked Policy where your premiums were invested in stocks and shares.

When the housing market and the stock market boomed in the mid 1980's, interest only mortgages and Endowments were sold in their millions with the expectations that consumers would be left with no capital to pay and a lump sum when the Endowments matured.

However in the mid-1990s it became obvious to millions of people that these expectations were completely overstated and the Endowments were not performing as expected, it became so bad that in the late 1990's the regulator at the time told the Endowment providers to write letters to millions of consumers to warn them of the risk of a "shortfall".

Since this ruling from the regulator, millions of people have either complained about their policy or switched to a repayment to avoid being left with a shortfall.

Compensation is usually based on what your position would have been now if you hadn't been sold an endowment policy but had taken out a repayment mortgage instead from the outset, it involves:

  • Comparing the mortgage interest and Endowment policy premiums you have actually paid, and the current surrender value of your mortgage Endowment policy, with the mortgage interest and capital repayments you would have paid on an equivalent repayment mortgage, and how much capital you would have paid off your mortgage.
  • Factors such as the need for life insurance, and any savings made as a result of the lower premium payments.
  • Establishing if you'd have have been in a better financial position had you taken a repayment mortgage from the outset, the difference is the amount of compensation you will receive. In addition you will receive 8% compensation interest, per annum on this sum.

You can still make a claim even if you have already cashed in your Endowment or if it's already matured.

  • My Claim Solved is regulated by the claims management regulator in respect of regulated claims activity, we operate a "no win, no fee service*" and charge no hidden fees for using our service.
  • We've successfully secured over £25 Million of compensation for our clients.
  • We have a team of dedicated and trained claims handlers specialising in Endowment Mortgage claims who will put you first and fight your corner to secure the compensation you're entitled to.
  • We're one of the leading claims management companies in the UK, having strong relationships with the biggest providers.

*A fee may be payable if a case is not pursued at the clients request once the claim has been processed by the Company (after a 14 day cooling off period expired) Our charges will be calculated by reference to the time spent by us in investigating and pursuing the Claim on your behalf up to the date the Contract ended, which shall be charged for in units of 6 minutes at the rate of £80 per hour + VAT (i.e. 10 units of 6 minutes make up 1 hour).