I recently began looking into companiesselling endowments, after a positive news story I heard a few weeks back. What I learned is that endowment mortgages are a special type of mortgage where the interest on the principle of the mortgage loan is due. Then, the principal of the loan is covered by an insurance company. This is essentially, by my understanding, the UK equivalent of the US interest-only loan. This loan has become very popular, and handy, in recent years with the real estate booms which have allowed more and more people to buy home,s and cash out with incredible equity, than ever before. Back to endowment loans, though. An endowment is an insurance policy, thus the policyholder must make a monthly premium, or payment. Some problems have resulted, though, with mortgage amounts coming due and the insurance not covering them in full. Therefore, the UK government has stepped in and introduced new legislation to protect consumers by informaing them that they may have higher value with an endowment policy selling service. These services may allow you to recieve up to 35% more!!! Definitly check it out, great info!
