Mortgage Information > Types of Mortgages > Interest Only > Endowment

Endowment Policy

This repayment vehicle is the most commonly used and provides life assurance cover and a fixed payment for investment. The payments are designed so that at full maturity, the amount of the loan along with the mortgage term, the amount invested along with the amount earnt are enough to pay off the mortgage. Unfortunately there is no guarantee that when the policy matures the balance will be enough to repay the mortgage.