The Endowment Diary

The Endowment Diary

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The Endowment Mis-selling Debacle - one of the UK's worst financial scandals

Wednesday, March 30, 2011

Shortfalls For Royal London and Scottish Life

This Is Money reports that with-profits (a misleading description if ever there was one) mortgage endowments with Royal London Mutual and Scottish Life will face a shortfall when their policies mature.

Hapless holders of 25 year £50 per month with-profits policies from Royal London Mutual will face a fall on policies maturing this year of 3.3%, compared with the previous year.

Scottish Life, which is part of Royal London Mutual, offers a worse return (4% down).

95% of all mortgage endowment policyholders at Scottish Life will face a shortfall, 53% of those with Royal London.

Lousy results from a lousy product.

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