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Remortgage guide
If you are warned about a potential endowment shortfall what should you do?

  • Endowment mortgages

    Endowment mortgages see monthly repayments not paying off what you have borrowed, but just the interest of the loan. More...

What if I do nothing?

Over the last few years endowment mortgage providers have been sending out reprojection letters outlining whether your endowment policy is likely to cover your mortgage loan.

If you receive one of these, you could just do nothing. You are under no obligation to do anything and regardless of what the letter says the stock market might perform well enough in the future to meet the endowment policy's original target.

However, it is highly advisable to find out whether you have the right to complain as soon as possible after receiving such a letter.

Reprojection letters are coded by colour, green for endowments that are likely to cover the loan, amber if this is uncertain, and red if it is likely you will be left with a shortfall.

If you receive an amber or red letter you might be able to receive compensation from your endowment provider.

By complaining you could receive a settlement cheque of thousands of pounds, and you can still stick with your provider whether you receive a settlement or not.

Additionally, delaying could cost you your right to complain.

Typically, you only have three years from the time when you first became aware or should reasonably have become aware you had good reason to complain.

Companies can reject complaints as being out of time – known as time–barring – if they are received outside these limits.


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