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Address the shortfall on your endowment mortgage By Emma-Lou Montgomery
1 Check your endowment letter
The colour-coded letter from your insurer clearly tells you whether your endowment is on track to repay your mortgage or not. Green means you're currently on track. Amber
2 Don't panic
The Financial Services Authority (FSA) FSA has banned insurers from giving advice in the shortfall letters, but you should get an advice booklet from the FSA, called: 'Your endowment mortgage - time to decide' with your letter. This explains your options.
3 What are my options?
Most experts advise against topping up your endowment or buying a new one and suggest instead stockmarket investments or changing to a part-repayment mortgage to cover the shortfall.
4 Could you be a victim of mis-selling?
A Treasury Select Committee report suggests as many as 60% of endowment policies may have been mis-sold. However, just because your endowment isn't performing well doesn't mean that it was mis-sold. The first step is to contact the company who sold you the endowment. If you suspect you have been a victim of mis-selling, contact the Financial Ombudsman on 0845 080 1800.
5 Act fast
This month, tens of thousands of Norwich Union and Standard Life policyholders will find their complaints rejected. Three years ago insurers set a deadline for receiving complaints. After this, claims will be rejected, no matter how strong the case. Prudential has also told its policyholders they have six months to complain. However, the Financial Ombudsman says it will look into unfair time-barring and overturn rejections if necessary.
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