Endowment mortgages was very popular in the 1980s, home buyers expected to not only pay off their mortgages but also have a tidy sum at the end of it. The endowment package was based upon combining life insurance with investment growth.

The endowment mortgage taken by home buyers in order to pay off a large sum of their mortgage, during the year 2004 many people found that their endowment mortgage were falling short leaving the home owner to pick up the bill.

What influenced people to take out an endowment mortgage?

During the 1980s inflation and interest rates were high along with tax relief on premiums paid on endowment policies. With offers like this is it looked to good to be missed. Tax relief on the payments was taken off years ago and interest rates came down.

Home loans lenders as well as estate agents who earned large amounts of commissions were the most to benefit from the endowment policy. Because of the high commissions many policies were pushed to home buyers and miss sold by the seller not revealing all the facts.

Get advice from an independent advisor before you make any decisions. Look at the all the options and what effects there might be if you were to cash in you policy. Profit plans of which have a 25 year term would in most cases give you a lower return than the amount invested.