UK Mortgage definition

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Unit-linked endowment policy

Where a borrower has taken out an interest only mortgage, a Unit-linked endowment policy is one method of paying off the capital element of the mortgage, using the proceeds of the endowment policy. These types of policy usually including life cover, and are designed to provide high investment performance, but they are speculative in that they provide little or no guarantee of achieving the value required to pay off the mortgage.