Endowment mortgage UK Mortgage definition

UK Mortgage definition

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Endowment mortgage

This was the most popular method of repayment in recent years, until the Endowment mortgage declined in the early 1990s. The borrower pays interest to the lender and hopes that an endowment policy will repay the capital at the end of the agreed term. The most common method used in the past has been the low cost, with-profits endowment, though the borrower can buy a fully guaranteed version. Recent problems with potential short-fall of endowment 'with profits' policy returns has virtually killed off this product.


THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

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