Repayment or Endowment

[DarylCope]

 Is it still a big risk to get an Endowment mortgage rather than a Repayment mortgage??

[hectic]

Endowment mortgages work on the basis that you only pay the bank the interest each month and have a seperate savings plan (with life cover attached) to cover the amount of capital borrwoed. The only problem with this type of policy of late is that you cannot guarantee that the fund that your money is invested in will make approriate returns to cover the capital amount of your mortage, which is the main reason that a lot of people are now in trouble as there is serious shortfalls on these policies due to 9/11 and the current war in Iraq. My advice would be to stay clear of them at the momoent as god only knows what going to happen next with the war and terrorists etc. I hope this helps

[Peter Pedant]

Hectic is right

get a repayment and dont gt an endownment

Endowments are a thing of the past, and are OK for an old fool such as myself, but even I wouldnt get a new one. There are better products available for a man-about-town such as yourself. It may be good to get advice about the best.

[emmalee]

Dont get an endowment!!  We have one, It is pointless to cash it in, and it leaves a predicted �8,000 shortfall on our mortgage.  We have changed to a repayment 18 months ago and by over paying just �25 a month we have already seen a good  dent in the capital.  This is fine and means we will be paying off our mortgage sooner, but at the same time we pay �50 plus a month on a useless product.

[SimonMorton]

I've got a huge endowment and it gives me no end of problems. Remember the golden rule for property - Repayment, Repayment, Repayment.