This type of mortgage advance used to be popular: it was commonly taken out
in conjunction with a special related insurance policy. More recently they have
been criticised as some policies will have been better than others and many are
paying out less than the value of the mortgage loan initially secured. Under this
type of scheme interest was paid regularly – monthly or quarterly –
but – the main loan remained outstanding until full repayment was due at
the end of the term, hopefully from the proceeds of the endowment policy. Some
insurers will still pay out a sum that exceeds the outstanding mortgage –
but not many. The actual bonus depends upon the success of the particular policy.
Few endowments are now being sold, These days there are a wide range of mortgage
schemes and our specialist staff will always be able to put you in touch with
up-to-date expert advice.