A large numbers of endowment mortgages policies have failed in paying back the loaned amounts due to mid way stoppage of premiums by policy holders. Whole market of endowment mortgages policies has suffered set back in performance as also on meeting commitments. Understandably, poor performing stock markets in recent times have much to be blamed about in financial performance scenario of the country. It is not a fault of normal people taking loans for lifetime investment to gather up conception of being sold endowment with wrong projection. Â They also believe that risks involved were not adequately conveyed to them for taking proper decision. Triggered market action is of large number of complaints and claims for compensation piling up with the offices of Financial Ombudsman Service.
Much needed course of action lead to working out a Mortgage Endowment Policy Reviews Code of Practice by the Association of British Insurers in September 1999. Message that was conveyed through this policy review was that holders treat these endowment mortgage policies for purpose of repaying principal amounts from receivable maturity amounts. Using money received in hand, they should pay back whole or remaining part loan amounts. Latest revision of this code was brought to effect on 1st June 2004. Norm was set to review all policies once in two years. Re-projection letters were made a part of obligation insurance companies had to follow. These letters are supposed to advice policy holders about performance of invested amounts, focusing upon holders' status of loan repayment using policy. Green, Amber and Red Colour coded letters meant conveying ‘good payback possibilities', ‘substantial risk', and ‘high risk situations' respectively of their mortgage investments.
Being well informed is of prime importance for proper decisions. In August 2005, TheFinancial Services Authority (FSA) did issue statement regarding procedure of making complaint about endowment mortgages. This procedure features consumer facesheet on Financial Ombudsman Service's website. Procedure of complaint making was conveyed to professional Claims Management Companies working as consultants for lodging financial claims. From their findings on endowment mortgages relating to shortfalls of policies to payments, FAS issued a report in July 2005. Their further action came as "Will your investment or savings plan pay off your mortgage?" a published consumer oriented factsheet in April 2006. Relevant website has FAQs regarding mortgage endowments plans. Thus, FSA has officially given full guidance about set of action on the matter.
Appropriate time of action is important for any official proceeding. Procedure of informing shortfalls to the loan takers was okay, but there were hazy pictures about what to do and when to do. This bottleneck has been effectively settled now with procedural confirmations through FSA publications. Since, by rule insurers are obliged to inform the policy holders of how their invested money is working every two years, consumers' complaint and claims can follow this timing logically. There may be shortfalls due to fluctuating stock market. But, complaints may not be attached only to shortfalls. It is widened up to cover broader scope of selling policies under wrong projection of prospects.
Endowment Mortgages
Mortgage Blog
Much needed course of action lead to working out a Mortgage Endowment Policy Reviews Code of Practice by the Association of British Insurers in September 1999. Message that was conveyed through this policy review was that holders treat these endowment mortgage policies for purpose of repaying principal amounts from receivable maturity amounts. Using money received in hand, they should pay back whole or remaining part loan amounts. Latest revision of this code was brought to effect on 1st June 2004. Norm was set to review all policies once in two years. Re-projection letters were made a part of obligation insurance companies had to follow. These letters are supposed to advice policy holders about performance of invested amounts, focusing upon holders' status of loan repayment using policy. Green, Amber and Red Colour coded letters meant conveying ‘good payback possibilities', ‘substantial risk', and ‘high risk situations' respectively of their mortgage investments.
Being well informed is of prime importance for proper decisions. In August 2005, TheFinancial Services Authority (FSA) did issue statement regarding procedure of making complaint about endowment mortgages. This procedure features consumer facesheet on Financial Ombudsman Service's website. Procedure of complaint making was conveyed to professional Claims Management Companies working as consultants for lodging financial claims. From their findings on endowment mortgages relating to shortfalls of policies to payments, FAS issued a report in July 2005. Their further action came as "Will your investment or savings plan pay off your mortgage?" a published consumer oriented factsheet in April 2006. Relevant website has FAQs regarding mortgage endowments plans. Thus, FSA has officially given full guidance about set of action on the matter.
Appropriate time of action is important for any official proceeding. Procedure of informing shortfalls to the loan takers was okay, but there were hazy pictures about what to do and when to do. This bottleneck has been effectively settled now with procedural confirmations through FSA publications. Since, by rule insurers are obliged to inform the policy holders of how their invested money is working every two years, consumers' complaint and claims can follow this timing logically. There may be shortfalls due to fluctuating stock market. But, complaints may not be attached only to shortfalls. It is widened up to cover broader scope of selling policies under wrong projection of prospects.
Endowment Mortgages
Mortgage Blog