Endowment Mortgage

Similar to Interest Only and Pension Mortgage in that the monthly repayments to the lender is the interest portion only.

Monthly contributions are made to an endowment policy which includes life assurance to clear the loan in the event of death.  At the end of the term the endowment policy should have grown in value – sufficient to clear the mortgage in full.

Values may rise and fall.  “Warning, there is no guarantee that the proceeds of the insurance policy will be sufficient to repay the loan in full when it becomes due for repayment.”