The Consumers Association has surveyed 4850 endowment mortgage holders regarding possible shortfalls and what action people have taken to reduce them.
The survey comes as the Association warns people that time is running out for them to complain if they believe they were mis sold endowments.
According to the survey results, 62% of people that had a projected shortfall had done nothing to address the issue. 11% with shortfalls had increased their payments.
Our View:
Although some people will have been mis sold an endowment, many will not have. You cannot complain just because of poor investment performance, especially if you knew the risks when you took your plan out. Many people have endowments that will not mature for 10, 15 or 20 years and although shortfalls are projected now, no one can tell what the future holds and whether the investment returns needed will actually be achieved.
The people that should be concerned and addressing shortfall issues are those with endowments that are due to mature in the short to medium term, i.e. in the next five to ten years.
There are many options for people with endowment shortfalls. Contact us for guidance or advice.
Download our free fact sheet on Endowment Mortgage - Don't Panic in the Client centre fact sheets section.