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Pension linked mortgage
steveprater
Posts: 1 Newbie
I took out a £30,000 pension linked mortgage with my bank in 1987. Surprise, surprise, there's not gonna be enough in the fund to pay off the mortgage! Good news is that the FOS say the bank has to pay up! I thought that this would simply mean that the bank would be forced to make up the shortfall when the time is due, but instead they say that the bank " has to pay redress by way of a calculation of the capital reduction that would have been achieved under a capital repayment mortgage, less 25% of the current transfer value of the pension plan fund". This seems ok in principal, although I have no idea how to work the figures out. Any thoughts...?
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