Mortgage Sorter
Recommended UK Mortgages

Mortgage Guide Contents

Types Of Mortgage Contents

How to make up an endowment shortfall


Thanks to lower than expected stock market investment returns, most of the UK's eight million or so endowment mortgage holders are unlikely to make enough from their policies to clear their mortgage debt.

The average shortfall is currently just over £7,000, but for many it will be far higher.

(For more on this, read What went wrong with endowment mortgages?)

If you're one of them, the important thing to decide now is how you're going to make this up.


Ways to fill the endowment gap

Pay more into your policy
Despite what your policy provider may tell you, this is a risky strategy.

To find out why, see What should I do with my endowment?

Start a new investment
You could make up the difference by starting some other kind of savings or investment vehicle, such as an Isa (individual savings account).

To read about these, go to Isa mortgages.

However, here again you will be relying on outside factors investment performance in the case of an equity Isa, and interest rates with a cash ISA and, as weve seen, this is inherently dangerous.

Convert to repayment

The only way to ensure your mortgage will be paid off in full by the end of the
mortgage term is to convert from an Interest-only to a repayment loan.

This is a relatively straightforward procedure, but it will increase your monthly payments.

However, you don't have to change your whole debt.

Many mortgage lenders will allow you to convert a portion of what you owe to a repayment basis, leaving the rest interest-only.

This will help keep the cost down.

And if you remortgage to a better deal at the same time, you could find it doesn't actually cost you any more.

(If it does, if necessary, you could free up the extra cost by stopping payments to your endowment policy).

For an explanation of how to make the switch, read How to change from an interest-only to a repayment mortgage.

Lodge a mis-selling claim

Of course, if it turns out you were mis-sold your endowment, you might be eligible for compensation.

To find out if you have grounds for a claim, go to Was I mis-sold my endowment?

 

 

To read more on this subject please see the list below or your mortgage guide or your home buying guide

Read enough? Just want a quote? To get your best mortgage quote quickly and easily we can put you in contact with a recommended mortgage adviser. It's free, completely confidential and there's no obligation at all. Simply fill out the form below

Value of Property £  
    (eg 125000)
Borrow How Much? £
    (eg 92500)
Your Morgage Type

 

 

 

 

 

Read On

Types of UK Mortgages

Repayment mortgages

Interest only mortgages

Interest repayment arrangements

Complete A-Z of mortgages

Read On / Mortgage Guide

Mortgage Basics

Choosing a Mortgage

Different Mortgage Types

Re Mortgages

How to Find your Mortgage

Mortgages in Principle

Costs of UK Mortgages

Mortgage TOP TIPS

Mortgage Calculators

A to Z all UK Mortgage Types

 

Read On

Guide to Buying Home in the UK

Guide to UK Home and Mortgage Insurance

Life Insurance Guide

Glossary of UK Mortgage Terms

Mortgage News

 

 

 


 

 




 

Back to A to Z Mortgages UK List

Read more about Types of Mortgages

See contents of Full Mortgages Guide

See contents of Home Buyers Guide

I've read enough for now and want to get a free Quick Mortgage Quote





Types Of Mortgage

Brief intro

The two major varieties:

Repayment mortgages

Interest only mortgages

Then mix in the various:

Interest repayment arrangements

Finally, to cover all the different types there's a

Complete A-Z of mortgages



Complete A-Z

All UK Mortgage types


100% Mortgages

Base Rate Trackers

Bridging Loans 

Bad Credit Mortgages

Buy to Let

Calculators for Mortgages

Cashback Mortgages

Capped Rate

Costs of a Mortgage

Current Account Mortgages

Discounted Variable Rates

Divorce and Mortgages

Elderly - Mortgages for the

Equity Release Mortgages

Endowment Mortgages

Expatriate Mortgages

First Time Buyer Mortgages

Fixed Rate Mortgages

Fix and Track Mortgages

Flexible Mortgages

Guaranteed Mortgages

Group Mortgages UK

Interest Only Mortgages

ISA Mortgage

Islamic / Muslim Mortgages

Key Worker Mortgages

Lifetime Rate Mortgages

Mortgages in Principle

Muslim Mortgages

Offset Mortgages

Part and Part Mortgages

Pension Mortgages

Poor Credit Mortgages

Prime Mortgages

Repayment mortgages

Remortgages

Renovation Mortgages

Rent Mortgages

Self Certification Mortgages

Self Employed Mortgages

Shared Ownership Mortgages

Standard Variable rate

Sub Prime Mortgages

Tracker Mortgages

Variable Rate


Can't Find It Here?

Enter what you are looking for in the box below



 


 

 

 







 




 

Get a custom rate and see
how much you could save by
filling out this quick form
below.

It's a FREE, no-obligation service.

Value of Property
£
 (eg 159000)
Borrow How Much?
£
 (eg 125000)
 Your Morgage Type
   











Browse over 200 Free Mortgage Tips

Your Complete Guide to UK Mortgages
Find Out How to Win the Race to Buy Your Home - Home Buyers Guide
How to Sell Your Home
Learn How to Save ££s by Remortgaging
Read the Insider Info on Home Insurance
Best Buy UK Mortgage Tables
UK Mortgage Calculators
First Time Buyers
Self Employed Mortgages
Bad Credit Mortgages
Overseas Mortgages
Common Questions / FAQs
Mortgage Definitions
Mortgage Lenders UK List
LATEST MORTAGE UK NEWS

Site Help

About Us
Your Privacy
Contact Us
HELP
Mortgage Guide Site Map
Tip Our Charity






Social Bookmark Us (Please ;-))
























 

 

 

 

 

FREE MORTGAGE QUOTES
Call 0845 22 33 112
or Apply Online Fast and Easy
 
Great Selection of
UK Mortgage
CALCULATORS

Click here
  
See Today's Latest
Mortgages
BEST BUY TABLES

Click here