Had a compensation offer but..

liney

Under the heading - Amount you would have repaid under a repayment mortgage from the offset the figure 2984.25 appears. However, the mortgage was attached to this endowment for 5 years and the cost of the endowment over that time was £67 x 12 x 5 years = £4020. This would be the amount paid off the capital if it was on repayment? or no?

Just wondered if anyone knew before i ring them.

dreamylittledream

Nope the amount of capital repaid in the early years of a mortgage is far less then in the later - that is how the payment is quoted as being the same for 25 years (assuming no interest rate changes of course). In the early years as you can see the capital does not reduce very much...

Your payments to your endowment also include costs, charges, commision to the adviser who sold it and life cover costs - the premium you pay was not the amount invested each month

liney

Whilst i know that the whole premium is not invested as far as my endowment goes, if i paid £67.00 on top of my monthly interest on a repayment mortgage, that figure would be paid off the capital would it not?