Market Commentary - October 2000
Are you well enough endowed?
The Financial Services Authority (FSA) have decided that they are not
going to order a full-scale review of all endowment mortgages. They
confirm that some mortgages were mis-sold - and indeed say that some
providers are still not giving suitable advice. They have published a
to help endowment holders understand what they should do next. If you have
an endowment policy, this is required reading!
Basically, you have a valid complaint if you were not given suitable
advice when you bought an endowment mortgage. However - you won't get
compensation unless you actually lost out financially as a result. It is
quite possible that you were mis-sold an endowment mortgage but, by luck
rather than judgement, are actually better off than if you'rd taken out a
different sort of mortgage. Conversely if you bought an endowment policy
after receiving correct advice and with a full appreciation of the risks,
you would not be entitled to any compensation even if there is a
substantial shortfall in the policy.
You have an endowment mortgage and you're still confused? Print off and read
the FSA factsheet.
Have a cup of tea and then read it again. Prepare for a long, drawn-out saga
If you don't have an endowment mortgage and are wondering what the fuss is
about - just forget it. It's dull, complicated and not relevant to you.
Find something better to do than worry about other people's mortgages.
No longer interesting enough for dinner parties. The Halifax
recently issued their
house price report for September.
They saw properties rise by an average of 1.6% in the month - giving an annual
rise of 9.2% This contrasts with figures from the Nationwide Building
Society with saw prices rise 0.4% in the month with an annual rate of
10.2%. The difference between the 2 sets of figures is probably related
to the geographic bias of the 2 companies. The Natiowide is more focussed
in the south - where property prices boomed at the turn of the year, but
have been slower since then. The Halifax, with is slightly more northern
bias, saw prices rise more slowly over the year - but they are catching up
now. (I didn't expect my column last month to have such an immediate
Does this tell us anything? Well, it seems to show that property prices
are once again back in the real world, subject to the same dull economic
factors as cars, carpets and cans of baked beans. You'll need to find
something more interesting to talk about at dinner parties.....like your
endowment mortgage for example.
Disclaimer: As usual, all the above is purely my opinion, and could be complete rubbish.
September 2000's The Market including house price trends
June 2000's The Market including the stamp duty changes
November 1999's The Market including sellers packs
September 1999's The Market including buy-to-rent