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endowment mortgage

   Also found in: Wikipedia 0.03 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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The mortgage market is now subject to detailed regulation by the Financial Services Authority (FSA), following the mis-selling of endowment mortgages and a reduction in consumer trust.
 
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