Endowment Mortgages were hugely popular in the 1980s and 1990s and were often sold alongside interest only mortgages. There has been a lot of problems and scandals around endowment mortgages and failure for the borrower to repay..
If you own your own home and have equity in the property, then a retirement interest only mortgage might be ideal for you if you are an older borrower.
There are currently two different ways to pay your mortgage payments – interest only or repayment. As the term implies, you are only paying the interest part of a mortgage loan and you don’t have to repay the amount you’ve borrowed until the end of your mortgage term,
Interest-only (IO) mortgages are becoming popular, said the Financial Adviser magazine last year. Indeed, interest-only mortgages accounted for 20% of all new mortgages granted during the [...]
If you have an endowment mortgage, it was likely arranged so that you could enjoy the benefits of an interest-only mortgage (lower monthly repayments). [...]
Interest-only mortgages have the attraction of relatively lower monthly repayment costs – you are only repaying the interest in those instalments and delay repayment [...]