Endowment complaints on the rise

Millions of homeowners are facing endowment shortfalls

More and more people are complaining about endowment policies, the Financial Ombudsman Service has said.

Many borrowers took out endowment policies to pay off their mortgages, but millions now face shortfalls.

The FOS now receives 1,300 complaints a week about endowment mortgages, 34% more than a year ago, and up from 300 a week three years ago.

The FOS - which resolves disputes between consumers and financial firms - received 600,000 enquiries last year.

This led to 110,000 investigations, a 13% rise on the previous year.

Millions of borrowers face shortfalls on endowments, an investment product sold heavily in the 1980s.

Many were told their endowments were guaranteed to pay off their mortgages.

However, it is estimated that 3.5 million households face shortfalls of more than £5,000 on their loans.