What is an endowment mortgage?
An endowment mortgage is an investment
scheme which was common in the 1980s and early 1990s.
The idea was to have an endowment and an interest-only
mortgage. You would pay a monthly premium to the company
(often an insurer) who sells you the endowment mortgage,
and the policy was supposed to grow over the years. This
way, when the policy matures, you would be left with enough
money to pay off your mortgage and possibly also have a
lump sum of cash too.
However, what many people did not realise is that endowment
mortgages were linked to the stock market, and when the
stock market crashed, their endowments were worth less than
they thought. Millions of people were left cursing the
endowment mortgage shortfall that left them having to pay
the rest of their mortgages themselves. Very few endowments
carry a guarantee to pay off the mortgage they are supposed to.
It is thought that the cost to consumers in total will
somewhere in the region between £30-50 billion. Even at
£30 billion, each of the five million or so people with
an endowment mortgage can expect an endowment
mortgage shortfall of around £5500.
Have you suffered from an endowment mortgage shortfall?
If you have been the victim of an endowment mortgage
shortfall, get in touch with our experienced staff and
start your claim today.
To talk to our expert team and get endowment mortgage
advice and find out about making a claim for compensation,
contact us on:
0800 970 2222
We'd be delighted to hear from you.
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