Endowment Mortgage

[Grandad.Malky]

They were just another con, created by the banks to scam the innocent. Arn't they brilliant, and even the people so far with their shortfalls have discovered that the endowment side, where they saved to pay it off was designed to reap more for the banks. It has been exposed as a scam, and many have had compensation.

 

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Not a bad scam when I had life cover for 25 years, only paid interest on the loan until the policy matured and then had a lump sum left over

 

I think you will find people were compensated for miss selling rather than it being a scam, do you honestly feel that some of the major insurance companies in the country are in the business of running scams.

[andyofborg]

They were just another con, created by the banks to scam the innocent. Arn't they brilliant, and even the people so far with their shortfalls have discovered that the endowment side, where they saved to pay it off was designed to reap more for the banks. It has been exposed as a scam, and many have had compensation.

 

they weren't a con and I know a lot of people who did rather well out of their policies. unfortunately, the changing market conditions over the last 10-15 years means these policies no longer perform like they used too.

 

a more worrying thing is the number of people who seem to have no way of paying any of their mortgage back rather than those who may face a shortfall in their policies.

[boyfriday]

They were just another con, created by the banks to scam the innocent.

 

That's not true actually, it was huge falls in predicted investment returns that created the problem for endowments, and the insistence by the regulators that those projected returns were based on 'illustrative' rates rather than past performance, which made all the endowment providers look the same. I had an endowment that matured some time ago and provided in excess of the anticipated return.