Two Million Face Endowment Shortfall
The Financial Services Authority says number facing endowment shortfalls totals 2m
18th July 2005
The Financial Services Authority (FSA) has said that the number affected by endowment shortfalls has now reached 2 million, with an average deficit of £7,200.
While nearly 70% of those affected have made an effort to deal with the situation by remortgaging, seeking advice or starting the compensation process, about 700,000 people have done nothing about their problem.
Endowment mortgages were popular in the 1980s, and relied on investing mortgage repayments to - in theory - pay off the mortgage at the end of the term and maybe have a lump sum left over. In practice, poorer than expected stock market performance has led to many endowments not performing well enough to clear the debt.
In some cases, where the mortgage provider didn't make the risk of this happening clear, the endowment policy holder will be able to claim compensation to cover the shortfall.
Read More: BBC
Home - Mortgages - Endowment Claims
