UK Endowment Mortgage
Endowment Mortgages were set up in the 1980’s and 1990’s. They were an alternative to the straight forward repayment mortgage where each monthly payment paid off part of the capital that you borrowed as well as the interest on that capital.
An Endowment Mortgage like an Interest Only Mortgage, was a way of paying off
only the interest incurred on your mortgage each month.
Endowment policies were set up as monthly investment vehicles. Endowment
Policies meant that you could invest a certain amount of money in what was
then a booming stock market. People hoped that their investments would
generate excellent returns and the fact that life insurance was included
left people with less to worry about. People believed these policies would
eventually pay off their mortgage capital at the end of their term. Not only was
it thought that this would be possible but it was also predicted that investments would
make an additional healthy sum which could used for whatever the property owner wished.
Unfortunately, things have not always gone as planned for many Endowment Mortgage holders. Many people have been informed that their policy is unlikely to generate enough money to pay off their mortgage capital. The shortfall which on average is any thing between 4% to 8% still has to be made up somehow. Some people have opened up saving’s accounts in oreder to get themselves back on track, savings accounts such as ISA's have helped as they are tax efficient savings.
Full range of UK Mortgages:
100% | Buy to Let | Capped Rate | Discounted Rate | Endowment | First Time Buyer | Fixed Rate | Flexible | Interest Only | ISA | Non Status | Self Build | Self Certification | Self Employed | Tracker | Variable Rate
