endowment mortgage


endowment mortgage
A mortgage in which repayment of the principal is made principally by means of an endowment assurance policy. In the UK in the 1980s and 1990s, many first-time home buyers were encouraged to take out this form of mortgage (which earns the mortgagor's agent an immediate commission from the life cover provider). However, with the subsequent poor performance of investments on the stock exchange, many endowment mortagees, rather than looking forward to a profit from the life fund once the principal has been repaid, are facing a shortfall in the principal at the end of the mortgage's life.

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  • endowment mortgage — noun A form of mortgage in which the capital sum is repaid by the eventual proceeds from endowment assurance • • • Main Entry: ↑endow * * * endowment mortgage UK US noun [countable] [singular endowment mortgage …   Useful english dictionary

  • endowment mortgage — ➔ mortgage1 * * * endowment mortgage UK US noun [C] UK PROPERTY, BANKING ► a mortgage (= a loan to buy a house) on which you pay only the interest, and also have an endowment (= insurance policy) that is intended to provide the money to pay back… …   Financial and business terms

  • endowment mortgage — ► NOUN Brit. ▪ a mortgage linked to an endowment insurance policy which is intended to repay the capital sum on maturity …   English terms dictionary

  • Endowment mortgage — An endowment mortgage is a mortgage loan arranged on an interest only basis where the capital is intended to be repaid by one or more (usually Low Cost) endowment policies. The phrase endowment mortgage is used mainly in the United Kingdom by… …   Wikipedia

  • endowment mortgage — UK / US noun [countable] Word forms endowment mortgage : singular endowment mortgage plural endowment mortgages a mortgage with an endowment policy that is intended to pay back the money you have borrowed after a particular number of years …   English dictionary

  • endowment mortgage — /ɪn daυmənt ˌmɔ:gɪdʒ/ noun a mortgage backed by an endowment policy COMMENT: The borrower pays interest on the mortgage in the usual way, but does not repay the capital. Instead, he or she takes out an endowment assurance (a life insurance)… …   Dictionary of banking and finance

  • endowment mortgage — noun Brit. a mortgage linked to an endowment insurance policy which is intended to repay the capital sum on maturity …   English new terms dictionary

  • endowment mortgage — ➡ mortgages * * * …   Universalium

  • Mortgage loan — Mortgage redirects here. For other uses, see Mortgage (disambiguation). Finance Financial markets …   Wikipedia

  • Endowment — may refer to many things:Finance*Financial endowment; relating to funds or property donated to institutions or individuals *Endowment (Life insurance); payment of the face value of a life insurance policy, usually at age 98 120 *Endowment… …   Wikipedia