This is generally an often-misunderstood mortgage as basically this is an interest-only mortgage with an endowment attached to it.

The endowment consists of a savings element and a protection element, so at the end of the mortgage term, if the endowment grows sufficiently it will pay off the mortgage or should death occur at anytime then the mortgage is paid off.

The endowment is useful if your are moving property and want to continue with an endowment mortgage as it is portable and all that needs doing is having the endowment plan “topped up” to cover the new loan, an endowment never really needs to be cancelled.

A lot of people, have the wrong idea saying that it is a waste of money, but to use an analogy, if you were travelling from London to Edinburgh and you knew that you needed £50 worth of petrol to do the journey then surely you can’t expect to complete the journey, if you only put in £5 worth of petrol.

An endowment is a long-term plan, therefore if you were to cancel in the early years what could you realistically expect to get back?

In the main people who have kept it for the full term have been very pleased with the results.

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