Labour MP John McFall has blamed the financial services industry's commission culture for exacerbating the endowment crisis and has called for a “more positive engagement” from the industry in tackling the problems created by mortgage endowment shortfalls.
The Treasury select committee chairman has made the call following the publication of the committee's report on restoring confidence in endowment mortgages.
The committee believes the problems associated with endowments could intensify until 2013, which is the peak year for endowment maturity, with the average shortfall of £5,500 likely to grow.
McFall says: “The evidence the committee has heard suggests this is an industry which is still dominated by a commission driven culture that focuses on short-term sales with insufficient appreciation of its long-term duty of care to its customers. This has played a significant role in undermining customer confidence in the industry.”