Poor Mortgage advice

holly_hobby

In 1992 they were def appointed refs for FP.

H

y002cjw

Thanks for the replies...esp holly hobby.

Your reply covers just about everything. To answer your first question. The lady in AN did a quite simple but in hindsight quite brutal calculation.

Option 1 stay as you are - Monthly mortgage payment plus endowment all multiplied by the existing loan period to give an overall cost to me for the remainder of the loan. At the time the calculation would have been something like (£460+£100)x(15yrs)=approx £100000.

Option 2 move to repayment. The quote I have in the letter was £700 a month. Calculation would therefore be 700 x 15yrs = approx £126000.

"So Mr y002cjw, this is going to cost you £26000 more to convert to repayment and dont forget if you leave things as they are the policy will pay off your mortgage and you'll have a few quid for yourself at the end of the term".

In answer to your final question how am I covering the shortfall, The policy is projected to pay out approx £60,000 (i.e. the current valuation on FP website - this could be a seperate post if you have knowledge regarding projected endowment payouts) and my mortgage balance is currently approx £62000. I have been paying an additional £2000 a month for the past 2 years to bring it down to this level, as my interest repayments are currently £150 a month based on 0.75% above above base rate:j - the only good thing to have come out of this!!!