mortgage missold?

[Fielder]

If my mortgage was missold. I understand that the capital loaned to me has to be repaid, as mortgage no longer exists.

My question is, if this happens, would all the payments I have made over the last few years go towards this?

[Ruleoflaw]

The following is written on the basis you hold an interest only mortgage with an insurance policy currently (endowment), intending to use that to pay off the mortgage at the end of its term.

 

 

If you were mis-sold an interest mortgage the result would be as though having a repayment (capital) mortgage from the beginning. So, if you were presumed to have taken out a repayment mortgage initially (instead of an interest only mortgage), the repayment mortgage would be paid off when the original interest mortgage would be paid off. You would have the same mortgage balance today as you would have if you had taken out a repayment mortgage originally. Your endowment would still be there, and any payments you made previously (to the mortgage) will have been taken into account. *The negative is that your payments however will be a bit more to make up for the added money you'll now have to pay (capital) along with the mortgage interest.

[Fielder]

Thanks Ruleoflaw, as I understand your post, all my payments will be allocated against the initial capital loaned to me by the mortgage company. If these do not equal the mortgage loaned then, I have to make up the difference.

 

Regardless of an endowment policy that I may have.