Homebuyers who at first believed that they were protected from the endowment failure scandal are now facing a shortfall after all.
Many people's homes and retirement prospects are in danger as millions of policies have been sold on the basis that they would raise enough cash to pay off the borrower's mortgage.
Two years ago Norwich Union gave its customers reassurance that it would make up the shortfalls but now due to such a bad investment record the money allocated will not now cover the shortfall.
Norwich Union promised that they would make a contribution of £7,900, but that will still leave the customer with a deficit of £9,900.
Norwich Union senior actuary David Riddington said that while the outcome was 'disappointing' the situation was far worse for customers of other firms who had not made the same 'peace of mind promise'.
Mick McAteer of the Consumers' Association, says: “Norwich Union created an expectation that they would meet a shortfall, buy they now appear to be using the small print to get out of this.”