Endowment mortgages

At one time, mid 1980’s to the 1990s, endowment policies used to be by far the most popular mortgage repayment vehicle.  Their attraction was that the monthly mortgage cost was little or no higher but that there was a realistic prospect of a large ‘bonus’ over and above what was needed to pay-off the mortgage at the end of its term.

Changing economic conditions and tax law changed this equation substantially against the borrower.  Many endowments policies matured well below their target value leaving homeowners with hard decisions to make about what to do. 

One route was, encouraged by claims management companies, to seek compensation.  Compensation claims for mis-sold endowment mortgages was the first of the mass retail compensation

This Paper is primarily of historical interest.