Endowment Mortgage

What action should I take about my Endowment Mortgage?

If you have received a projection letter from your insurance company indicating that there will be a shortfall on your endowment mortgage, you should consider the following:

switching to a repayment mortgage? click for quotes
Call a member of our team for advice: 0845 121 3155
Do you require replacement life cover? click for more


Endowment Mortgage history

Endowment mortgage policies were sold by the bucketful in the 1980s and 1990s as an alternative option to a Repayment mortgage. An endowment mortgage is a life insurance savings policy which is designed to grow over a certain time scale (often 25 years) to pay off the amount borrowed to purchase a property. So in this respect the homeowner pays the interest on his/her mortgage and a monthly premium into the endowment mortgage savings plan.

Types of Endowment Mortgage

There a basically two types of endowment mortgage policy. A "full" endowment mortgage policy is where there is an underlying guarantee, that all of the mortgage amount will be paid off. In paying for this guarantee the monthly premiums are expensive which explains why the second type of endowment mortgage, the "low cost" endowment mortgage has been by far the most popular plan sold to millions of UK householde