Financial Adviser Ickenham, Middlesex ~ Financial Planning Ickenham, Middlesex
Financial Advice Ickenham, Middlesex ~ Pensions Advice Ickenham, Middlesex ~ mortgage advisers Ickenham, Middlesex

left webpage shadowright webpage shadow
Company logo
Neville Birch
comment on image 1 comment on image 2

Endowment

How does it work?

You make two payments per month. One to the lender to repay the interest on the amount borrowed, the other to an insurance company for an endowment contract. There are mainly two types of endowment: unit linked or with profits. Both invest in a broad range of assets including stocks and shares. The capital in the endowment aims to build up over the term of the mortgage to repay the outstanding capital, although to achieve this the investment performance needs to be sufficient to build up the required capital and this performance cannot be guaranteed.

ADVANTAGES:

This type of repayment vehicle is flexible since:

  1. You can take the endowment policy with you if you move home or change mortgage lender.
  2. Endowments usually include some kind of life cover and some also include critical illness cover.
  3. If the endowment contract performs well, you may accumulate more funds than required to repay the loan.

DISADVANTAGES:

  1. Endowments are not risk free as there is investment in the stock market.
  2. There is a possibility your fund may not have built up sufficiently to repay the capital.
  3. You must keep a watchful eye on your fund's performance to help prevent this happening.

THE VALUE OF INVESTMENTS AND THE INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.

A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.


Mortgage/Equity Release Enquiry
Mortgage Calc
investment TV button link
product research button link
rss Financial times example feed

Company address:
Neville Birch & Co, Copthall Farm, Breakspear Road South,
Ickenham, Middlesex, UB10 8HB
T: 01895 637 121
F: 01895 625 121

Email: info@nevillebirch.com

Neville Birch & Co is Authorised and Regulated by the Financial Conduct Authority.

Neville Birch & Co is entered on the Financial Services Register (www.fsa.gov.uk/register/firmSearchForm.do) under reference 125455.

The FCA do not regulate National Savings products, loans, will writing and some forms of mortgage, offshore funds and inheritance tax planning.

The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

Telephone: 01895 637 121 | info@nevillebirch.com

Designed & developed by Web Pro IT © 2009

Life insurance quotes Ickenham, Middlesex ~ best mortgage rates Ickenham, Middlesex ~ Financial Advice Ickenham, Middlesex ~ pensions advice Ickenham, Middlesex
retirement planning Ickenham, Middlesex ~ tax saving advice Ickenham, Middlesex ~ investment advisers Ickenham, Middlesex