An endowment mortgage is a mortgage with an interest payment element coupled with a separate payment into an endowment investment product designed to repay the mortgage at the end of the term.
Money is invested in stocks and shares and designed to grow to the level required to pay of the mortgage at the end of the term. This type of mortgage has come in for some criticism over the last few decades because the nature of stock market investments means that the fund at the end of the endowment investment period is not always enough to cover the capital repayment required at the end of the term.
It is possible to cash-in or sell your endowment policy if it is not growing at the required level but you may not get back the amount of the original investment.
- Leeds BS cut rates by up to 0.70% on buy-to-let mortgages
- Metro Bank cuts rates on two-year fix and tracker mortgages
- Clydesdale and Yorkshire cut fees on new fixed rate mortgages
- HSBC and Yorkshire BS pull out of interest-only mortgages
- First Direct launch three new best-buy fixed rate mortgages
- Can you combine endowment and standard mortgages?
- Accord cut rates on fixed-rate mortgages for FTB's
- Endowment mortgages sold for £1,000s too little
- Nationwide pulls interest-only mortgages for new borrowing
- Santander raises the cost of SVR mortgages by 0.50%