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About Repayment Mortgages
Moving twice, but taking a new 25 year loan with each move.
Again, we assume that the borrowers start with a mortgage of £50,000 over a 25 year term. They move after 5 years, increasing their mortgage by £25,000. They move again 5 years later, increasing their mortgage by a further £25,000.
Taking into consideration the portability and flexibility of an endowment policy, the cost different on this example is £55.94 and this saving should be greater should you move more times.



Compare this to an endowment.
| Years | Balance £ |
Payment to Lender £ |
Mortage Protection Premium £ |
Total Monthly Payment £ |
|---|---|---|---|---|
| 1-5 | 50,000 | 303.09 | 24.24 | 327.33 |
| 6-10 | 69,380 | 420.56 | 48.27 | 468.83 |
| 11-25 | 86,581 | 524.83 | 88.16 | 612.99 |
| Repayment | |
| Mortage Interest @ 5.25% Loan Repayment Policy Premiums |
£100,868 £100,000 £30,799 |
| Total Cost | £231.667 |
| Estimated Policy Proceeds |
N/A |
| NET Cost of Loan | £231,667 |
|---|---|
*This example is for information purpose only, no advice is being
given. The Airline Mortgage Company do not take any responsibility
for any action you might wish to take with view to surrounding endowment
policies from the advice of 3rd parties.
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