Nearly 1.5 million homeowners have now complained that they were mis-sold endowment mortgages, according to figures obtained by Which?.
The says there have been around 1,400,000 complaints since April 2000 and over a billion pounds in compensation has already been paid out by mortgage companies.
Which? estimates that as many as five million endowment mortgages may have been mis-sold.
We launched our own Endowment campaign in September 2002 to encourage the victims of mis-selling to complain and receive compensation.
Our Endowment action website gives free tips and information, as well as a letter template to help you complain.
An endowment mortgage combines an interest-only mortgage and an investment (the endowment policy). Throughout the term of the mortgage (usually 20 or 25 years) you pay interest on the amount borrowed to your mortgage lender, and, pay a monthly premium to your endowment policy.
But millions of people may have been mis-sold their endowment policy in the first place.
Although there are many reasons why an endowment policy may not have been suitable, if you were not informed of the risks associated with using an investment product to repay your mortgage then you may have grounds for complaint.
However, although many endowments are expected to fall short of the amount needed to pay off the mortgage, this isn’t in itself a cause for making a mis-selling claim.
Head of Which? Campaigns, Louise Hanson said: ‘There is a deadline to complain and you should do so as quickly as possible or risk missing the chance.
Miss the chance
‘There’s a plethora of companies that offer to pursue a claim on your behalf for a share of the compensation but our advice is to use our site, which is free.
‘The Financial Ombudsman Service has said that claims firms are no more successful in getting compensation than doing it yourself and thousands of people have already received redress after using the Which? website to make a complaint.’