Endowment mortgage
There are different types of mortgages available in the market today. Endowment mortgage is a kind of interest only mortgage, where only the interest is paid for the total period of the loan and the principle amount is only paid during the end of the term. The endowment policy is actually the mixture of investment, life assurance and savings wrapped in an insurance policy.
Many a times the endowments fail to meet expectations as the charges are quite high and the investment returns have fallen recently. In such a case with the interest only mortgage, you need to pay the extra amount to the investment fund. Many people are getting warned that their endowment will not cover the mortgage loan because the policy providers are rather slow in passing over the message to the borrowers.
Before opting for the endowment options, you should research about the criteria, comments, and quotes of the endowment policies and must make sure that these policy suits you the best. As this is a form of interest only mortgage policy, you have the added benefit of saving money and not have to pay a lump sum amount of money every time. Moreover, there is a benefit that it is not affected by the rise and fall of the interest rates.