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Help! Do you know about mortgage interest calculation?


221b
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Hello

 

Winterthur have agreed that my endowment mortgage - taken out in 1998 - was mis-sold.

 

Hurrah!

 

All done without the use of one of the shark companies, luckily...

 

I have a question, though!

 

They have offered to calculate the loss in one of two ways and they've asked me to decide which of the two they should proceed with. This is where I am stumped...

 

They will either:

1 Calculate any loss by using my exact mortgage details - making allowance for any change in lenders or special deals that I might have had, or...

 

2 Use the assumption method which assumes that I had a Standard Variable rate mortgage with the Halifax throughout the term of my interest only mortgage. This method allows them to calculate more quickly, but using my exact mortgage details may provide a higher or lower redress amount.

 

They also want to know if I have since repaid my mortgage in full.

 

The facts are that I was on a Fixed Rate Mortgage with the C&G for the first 6 years after which I discharged the mortgage when I sold the original house, but have since transferred the endowment across to my new property and am still paying the monthly premiums.

 

Can anyone suggest what would be my best move?

 

I am not sure which route to go down in terms of redress nor what to do with the endowment itself now. I am almost certain that cashing it in would be a bad move but am open to advice on that!

 

Many thanks!

 

221b

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