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Example 4 |
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Capital surplus more than offset by higher 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: 8 years |
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Established facts |
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Endowment surrender value: |
£7,800 |
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Capital repaid under equivalent repayment mortgage: |
£7,600 |
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Surrender value less capital repaid: |
£200 |
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Cost of converting from endowment mortgage to repayment mortgage: |
(£250) |
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Total outgoings to date: |
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Repayment mortgage (capital + interest + DTA life cover): |
£34,510 |
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Endowment mortgage (endowment premium + interest): |
£34,950 |
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Difference in outgoings (repayment - endowment): |
(£440) |
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Basis of Compensation |
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In this example, the complainant has suffered loss because of the higher total outgoings to date of the endowment mortgage but has gained because the surrender value of the endowment is greater than the capital repaid. Since th | |
Status: In force
Version date: 31 March 2013 - onwards
Version 1 of 1