Thinking Of An Endowment Mortgage

Thinking Of an​ Endowment Mortgage?
Endowment mortgage is​ a​ type of​ mortgage where you​ need not pay the​ principal amount you​ have borrowed from the​ lender,​ during the​ term of​ the​ loan,​ you​ would be paying only the​ interest and as​ well as​ the​ premium for the​ endowment policy you​ have taken .​
The endowment policy grows large enough at​ the​ end of​ the​ mortgage period normally 25 years for the​ repayment of​ the​ mortgage loan .​
Within this package you​ would also be paying the​ life insurance that will repay the​ loan incase if​ you​ die as​ there is​ no guarantee for your endowment policy to​ pay off your mortgage.
The endowment policy has two parts in​ it,​ a​ life cover part and an​ investment part,​ in​ life cover part it​ would pay off your mortgage debt incase if​ you​ die during policy,​ and in​ investment part it​ will repay your mortgage when the​ policy get ended up if​ you​ live till the​ policy ends up .​
But this part is​ not guaranteed as​ people find the​ endowment policy is​ not in​ track and not sufficient enough to​ pay the​ mortgage debt at​ the​ end of​ the​ policy or​ mortgage ,​ and this leads to​ think about the​ other laternatives to​ make up the​ amount,​ due to​ this endowment mortgages are not so popular as​ the​ other mortgages.
With endowment mortgage you​ pay only the​ interest and the​ principal will remain the​ same,​ if​ the​ endowment policy would perform well it​ will pay off the​ mortgage debt at​ the​ end,​ incase if​ the​ endowment policy does not perform good it​ will leave you​ with the​ huge amount of​ debt to​ settle.
You may receive a​ letter from the​ endowment company that would tell you​ that you​ policy is​ not in​ track and so there is​ not sufficient fund for the​ repayment of​ the​ mortgage at​ the​ end of​ the​ policy,​ by seeing this letter you​ should not delay taking further action,​ you​ should not get worried and make any hasty decision,​ first you​ should check the​ facts,​ don’t cash in​ your policy,​ don’t ignore it​ at​ the​ same time as​ things would go worst if​ you​ don’t act immediately,​ you​ should think about the​ other options to​ make up the​ shortfall by switching the​ amount of​ shortfall for the​ repayment of​ mortgage,​ or​ asking the​ lender to​ convert the​ endowment loan to​ other type of​ loan where you​ can repay the​ principal with interest,​ or​ starting an​ additional saving to​ make it​ up the​ shortage,​ or​ you​ can plan to​ extend the​ endowment mortgage term or​ you​ can opt for top up of​ the​ endowment plan.
On top of​ everything you​ take up the​ advice of​ your financial advisor,​ or​ discuss the​ status with your lender

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