Mortgage endowments

An endowment policy is a regular savings plan that will pay out a lump sum at the end of its term, or if you cash it in early, or on the policyholder’s death. If you think you’ve been mis-sold an endowment policy, and the adviser or firm that sold you the policy no longer exists, we might be able to help you claim compensation.

If the endowment policy was linked to a mortgage we might be able to help you claim compensation, depending on what you were told at the time you took the policy.

To be able to claim compensation some of the following need to apply:

  • Your adviser didn’t properly explain that because the return from an endowment policy is linked to the stock market, there was a risk that at the end of its term your policy could leave you with a shortfall in repaying your mortgage.
  • Your endowment is due to pay out (or ‘mature’) after your retirement age and it was clear at the time the advice was given that you wouldn’t be able to carry on paying premiums after you retired.
  • Your endowment is not due to mature until after your mortgage loan has finished, and this wasn’t made clear to you at the time of the advice.
  • You already had an endowment and were advised to surrender it and take out a new one.

There are time limits for claiming compensation for mis-sold endowments. You either have:

  • Six years from the date your policy was sold.

Or, if this gives you more time;

  • Three years from the date you realised (or should reasonably have realised) that you have cause for complaint.

Home finance

Mortgage & endowment advice

We may be able to compensate you for mortgage advice you received after 31 October 2004 and endowments you were mis-sold after 28 August 1988, if you’ve lost money as a result, and the advisor has since failed.

  • up to £85,000 per eligible person, per firm.


  • up to £50,000 per eligible person, per firm.


  • 100% of the first £30,000 and 90% of the next £20,000 up to £48,000 per eligible person, per firm.


See how long mortgage endowment claims typically take to process.