• From This is Money:

    More than three million home-buyers have been warned that their endowment policies are unlikely to pay off their mortgages.
    Some insurers have just one in 100 mortgage endowments on target, a Money Mail investigation has revealed.
    They include Standard Life, whose endowments were sold in huge numbers to homebuyers who borrowed from the Halifax in the Nineties.
    In all, 735,000 policies, 98% of its total, are likely to fail, while 1% are in a perilous position, leaving just 7,500 on target.
    With-profits endowments were supposed to build up a pot of money for investors over 25 years by adding ‘bonuses’ each year to the money saved, plus an extra big bonus at the end.
    Homebuyers were told that this would smooth out any erratic stock market movements, ensuring their investment would meet its aim of repaying the mortgage and giving a lump sum on top.
    Despite this, more than nine out of ten endowment policies run by Clerical Medical, Co-op, London Life, Friends Provident, Nationa…

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    Posted by Jon @ 7:17 pm

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