Experts and financial analysts are speaking out about the problems in the endowment mortgage industry that are affecting thousands of consumers. Many were promised endowment mortgages that would have a high rate of return, only to find that over the past few years the endowment mortgage returns have been significantly smaller. For those who rely on the payments that their endowment mortgages bring in, the situation has become quite severe. Fay Goddard of Aifa stated, “When you look at the figures surrounding mortgage endowment complaints involving IFAs, they made up 12 per cent yet sold more than half of the products. The majority of IFAs acted compliantly and in good faith yet it is their reputation which is hit continually as they are portrayed as the main perpetrators of any deception.”No one seems to actually report this or focus on this as a major issue. Most IFAs will recommend something and genuinely believe the product is right for their client. If they are lead to understand a product is appropriate then it is not their fault if they were given incorrect details, or at the worst, deliberately mislead by the provider about the possible downsides.”
Related reading: Endowment Mortgage
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