A ruling on the suitability of a mortgage endowment policy will depend on whether it exposes the customer to a risk they were unwilling to take, says the ombudsman.
The Fos has produced a technical note on mortgage endowment complaints which outlines the typical approach it takes in any particular case. It explains there is a risk mortgage endowment policies will not grow sufficiently to repay the mortgage at the end of the term, and most customers say they were not aware of this and would not have chosen this type of mortgage if they had been told of the risk. The Fos says it would be unlikely to uphold a complaint if it is satisfied the customer was willing, and in a position, to take the level of risk presented by the policy sold, but it would pr...
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