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Example 5 |
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Capital surplus partially 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: 10 years |
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Established facts |
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Endowment surrender value: |
£11,800 |
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Capital repaid under equivalent repayment mortgage |
£9,700 |
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Surrender value less capital repaid: |
£2,100 |
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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): |
£46,800 |
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Endowment mortgage (endowment premium + interest): |
£47,500 |
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Difference in outgoings (repayment - endowment): |
(£700) |
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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 relative to the repayment mortgage. However the sum of this and the conversion cost is less than th | |
Status: In force
Version date: 31 March 2013 - onwards
Version 1 of 1