§ Ian LucasTo ask the Chancellor of the Exchequer what his estimate is of the proportion of people with endowment mortgages who have policies which are unlikely to pay off the loan. [64313]
§ Ruth KellyThe Association of British Insurers reported on 13 May 2002 that there is now a significant or high risk that 61 per cent. of the current 10.2 million mortgage endowments (covering 6 million households) will not pay out enough to pay off the target sum, usually the amount of the mortgage loan. This is based on the first 1.25 million re-projection letters and cannot be taken as a representative sample. The percentages are likely to change.
FSA research conducted in spring 2001 indicated that only three out of 10 policyholders had taken action to remedy their potential shortfall. Of the seven out of 10 households that have taken no action, around half had good reasons. For example, they had repaid the loan by other means and were continuing to fund the endowment as a savings vehicle.
§ Ian LucasTo ask the Chancellor of the Exchequer how much compensation has been given to consumers who were mis-sold endowment mortgages since 1992. [64315]
§ Ruth KellySince 1988, when the system of financial service regulation came into force under the Financial Services Act 1986, and up until the end of the first quarter
Mid 1996-based population projections 2002 to 2012 for all persons under 20 years of age—London GOR thousands Age group 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 0 to 4 years 492.5 490.2 487.3 484.4 481.6 479.1 477.1 475.8 475.3 475.5 476.4 5 to 10 years 568.8 565.1 563.4 560.3 558.3 556.2 552.5 549.7 546.5 543.3 540.4 11 to 15 years 442.9 450.4 452.3 455.1 456.4 452.4 450.3 448.6 446.0 444.6 443.1 16 to 29 years 339.9 344.7 353.8 359.1 364.3 372.6 376.2 378.0 380.5 376.7 373.1 Source:
ONS