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Endowment

How does it work?

You make two payments per month. One to the lender to repay the interest on the amount borrowed, the other to an insurance company for an endowment contract. There are mainly two types of endowment: unit linked or with profits. Both invest in a broad range of assets including stocks and shares. The capital in the endowment aims to build up over the term of the mortgage to repay the outstanding capital, although to achieve this the investment performance needs to be sufficient to build up the required capital and this performance cannot be guaranteed.

ADVANTAGES:

This type of repayment vehicle is flexible since:

  1. You can take the endowment policy with you if you move home or change mortgage lender.
  2. Endowments usually include some kind of life cover and some also include critical illness cover.
  3. If the endowment contract performs well, you may accumulate more funds than required to repay the loan.

DISADVANTAGES:

  1. Endowments are not risk free as there is investment in the stock market.
  2. There is a possibility your fund may not have built up sufficiently to repay the capital.
  3. You must keep a watchful eye on your fund's performance to help prevent this happening.

THE VALUE OF INVESTMENTS AND THE INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.

A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

There will be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate that it will be up to 1.5% of the loan value. The overall cost for comparison is 6.5% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.


Mortgage Enquiry
Mortgage Calc

172 Commercial Rd
ALDGATE
London E1 2JY
t. 020 7790 4445
f. 020 7790 2575
124 Stepney Way
STEPNEY
London E1 3BG
t. 020 7702 8999
f. 020 7702 8777
Affiliates
Park View Estate
Clear View
Clear View Claims

Company Registration Details

Calingford Ltd

Registration N0: 07667288
Registered Office: 172 Commercial Road, Aldgate, London, England, E1 2JY
Xpresslink Properties is a trading style of Calingford Ltd