The Endowment Diary

The Endowment Diary

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

Wednesday, April 11, 2012

The Endowment Timebomb

Legal & General (L&G) have warned that there will be a peak in with profits (a misnomer if ever there was one) mortgage endowment maturities in 2013, with most of them showing a shortfall.

Legal & General state that (based on its figures) 86% of policyholders are in the red, and that 46,000 L&G policies will mature next year.

Given that many people have not put aside enough money to meet these shortfalls, next year will pose the risk of a severe destabilisation of the housing market.

2 comments:

  1. Anonymous4:17 AM

    Tracking my L&G with profits endowment over the last 24 years using the basic rate of interest over each year - I would have had more returned if I have saved the payments in a savings account. Eg target £34K, L&G forecast £26K calculated interest if all payments went into savings account is £27K. Sadly I lost the original details and could not make a claim for the miselling of this rubbish endowment policy.

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  2. Anonymous6:21 AM

    I am now in my late 40s with very good health and I still can’t believe how naïve I was, when I signed up for 25 year L&G (Legal & General) Endowment policy with profit back in in 1990.

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