20.5 Endowment Scenario 5 - Redress Manager 2023

Redress Manager 2023
Endowment Scenario 5

Five Lenders

Mr P & Mrs E Jolly

10 The Grange

Hill Top

Bedworth

CV4 2BY

2^nd May 2010

Dear Sir / Madam,

Based on the advice from our financial advisor, we took out an endowment mortgage. Our advisor at the time strongly advised us to take out an endowment mortgage over our choice of repayment. We did and still do consider that we were given bad advice.

Since taking out our first mortgage we have changed lender several times, standard MIRAS applied to all mortgages, the details are as follows:

Loan Barclays (Branches)	£42,500
Completion date	12^th December 1989
End date	1^st May 1991
Term	25 years
First payment made	1^st Jan 1990
Endowment premium	£51.00 from 12/12/1989 for 25 years
Surrender value 2^nd May 2010	£20,997
Capped rate	9.75% from 12/12/1989 - 12/04/1991

Loan Nat West	Increase £16,000
Completion date	4^th March 1992
End date	1^st May 1995
Term	23 years
First payment made	01/04/1992
Endowment premium	£25.00 from 04/03/1992 for 23 years
Surrender value 2^nd May 2010	£10,905
Fixed rate	7.95% from 04/03/1992 - 04/03/1994

Loan Nationwide	Increase £30,000
Completion date	1^st May 1995
End date	21^st May 1997
Term	19 years
First payment made	1st June 1995
Endowment premium	£52.00 from 01/05/1995 for 19 years
Discount	1% from 01/05/1995 - 01/05/1997
Surrender value 2^nd May 2010	£12,850

Bradford & Bingley	Reduced by £7,500
Completion date	21^st May 1997
End date	1^st Sept 1999
Term	17 years
First payment	1st June 1997
Discount	2.5% from 21/05/1997 - 01/08/1999

C&G	Carried forward
Completion date	1^st September 1999
End date	2^nd May 2010
Term	15 years
First payment made	1^st September 1999
Fixed rate	6.95% from 01/09/1999 - 01/10/2001

I look forward to receiving your reply, advising me of how to take this forward.

Yours faithfully

Mr & Mrs Jolly

Some research via the endowment supplier and lenders verify the details are correct. The decreasing term assurance payment would have been £7.60 for the first loan from 12/12/1989 for 25 years and £3.32 for the second loan from 04/03/1992 for 23 years. The final policy being used is £6.86 from 01/05/1995 for 19 years.

No MIRAS is applicable to the second or third calculation as the full MIRAS allowance is allocated to the initial advance (calculation 1).