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MM survey reinforces endowment concerns

The Money Marketing Mortgage Repayment Focus Survey reinforces industry con- cerns over the scale of the possible problem of endowment misselling.

MM&#39s latest figures reveal a large proportion of mortgage endowment policyholders are at risk of being una-ble to repay their mortgage.

Among providers which have admitted to a large number of red letters are Woolwich Life, with 42 per cent of its policies falling into this category, followed by Scottish Life with 36 per cent.

MGM Assurance says 17 per cent of its policies are in the red.

But, notably, five major providers, Allied Dunbar, Friends Provident, Legal & General, Royal Liver and Standard Life, were either unable or unwilling to provide figures for the survey.

CGNU says it was unable to provide details because of its recent merger.

Clerical Medical, MGM Assurance, Scottish Life, Scottish Widows and Woolwich report that a majority of policyholders fall into either the red or amber categories and a further three companies say that at least of a third of their policyholders come under these categories.

In the amber category, Scottish Widows is at 65 per cent, Scottish Life is at 55.6 per cent, Clerical Medical and MGM Assurance have 55 per cent and Woolwich has 52.6 per cent of policies.

Money Marketing editor of the survey Sandra Grandison says: “Our research among life offices suggests the proportion of amber and red letter policyholders of the com- panies taking part in this survey could translate into many thousands of people being at risk of suffering a shortfall at maturity.”

For a copy of the survey, call 020 7292 3730.

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