Endowment mortgages (with profits)

[Father ted]

We took out a so called with profit endowment mortgage policy back in oct1993,it due to mature in oct this year 2013.
But surprise surprise we will be lucky to get 25k from the policy thus leaving us short of out outstanding original borrowings of £33 punts at the time.
The policy was taken out with Scotish provident at the time who are now owned by Pheonix.
I'm sure there are many other borrowers in the same situation.
It seems we were mislead into being sold a product that does Not give the borrowed amount or a Profit either.

 

[Luternau]

Yes, you are not alone being in this situation.
You should search AAM for other posts about this. I believe the banks are covered in that that they have the statute of limitations to prevent any claim and that they (may have) wrote to customers advising them that the policy would not cover the principle and to increase payments by x to ensure it did.

 

[wbbs]

I thought the with profit ones with Scottish Prov did actually guarantee to pay the mortgage outstanding, it was the low cost endowment ones that didn't. Is this not the case?