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Example 2 |
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Capital shortfall partially offset by lower endowment mortgage outgoings |
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Background |
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Capital sum of £50,000 |
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25 year endowment policy |
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Duration to date: 5 years |
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Established facts |
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Endowment surrender value: |
£2,500 |
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Capital repaid under equivalent repayment mortgage |
£4,200 |
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Surrender value less capital repaid under equivalent repayment mortgage: |
(£1,700) |
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Cost of converting from endowment mortgage to repayment mortgage |
(£300) |
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Total outgoings to date: |
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Repayment mortgage (capital + interest + DTA life cover): |
£21,950 |
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Endowment mortgage (endowment premium + interest): |
£21,350 |
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Difference in outgoings (repayment - endowment): |
£600 |
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Basis of Compensation |
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In this example, the complainant has suffered loss because the surrender value of the endowment is less than the capital repaid but has gained form the lower outgoings of the endowment | |
Status: In force
Version date: 31 March 2013 - onwards
Version 1 of 1