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endowment mortgage

   Also found in: Wikipedia 0.01 sec.
endowment mortgage
n
(Business / Insurance) an arrangement whereby a person takes out a mortgage and pays the capital repayment instalments into a life assurance policy and only the interest to the mortgagee during the term of the policy. The loan is repaid by the policy either when it matures or on the prior death of the policyholder


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People with an endowment mortgage could swap to a repayment mortgage to start bringing down the balance and begin reducing the risk of falling into negative equity.
A pension linked mortgage works in the same way as an endowment mortgage and reverse mortgage.
Margaret and Allan Lewis were advised by Lloyds TSB in 1988 to buy their house with an endowment mortgage.
 
 
 
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