Endowment Maturity

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Endowment Maturity

In the past, many homeowners were advised to set up endowment policies as an investment in order to pay off an interest only mortgage when the policy matures.

Poor returns

Unfortunately, poor stock market returns have led to endowment providers (most of them big-name financial services companies) declaring very low investment returns with little or no bonus payouts.

This has resulted in a situation where a very great number of people are facing retirement having assumed that their mortgage would be paid off by their investment but are finding that this is not the case and instead, they have a shortfall of many thousands of pounds.

Some providers have undertaken guarantees to make up some, or even all of the shortfall and they should have been in close contact with any policyholders that are or may be affected.

Endowment policies

If you have an endowment policy which you are relying on to pay off your mortgage and you have not already done so, ask your provider for current values and predicted maturity values and what policies they have in place for making up any potential shortfall.

If you have an endowment that will be insufficient to pay off your mortgage, you may have been mis-sold the policy and as a result, you may be entitled to compensation. If you would like help with this, please complete our Quick Enquiry Form above and one of our advisers will contact you.