ArticlesBase.com - Free Articles Directory
Free Online Articles Directory
10.10.2008 Sign In Register Hello Guest
Email:
Password:
Remember Me 
forgot your password?


What Went Wrong With Endowments And What Can You Do About Your Mortgage?

Author: Derek Both Author Ranking Gold | Posted: 25-05-2008 | Comments: 0 | Views: 8 | Rating:  (53) Article Popularity - Blue (?) Got a Question? Ask.
Sign Up Now!

Endowments are a dirty word amongst most homeowners! If you bought your home in the 80's or early 90's you probably took out an endowment policy as a way to repay the balance after 25 years. At the time, interest rates were in double figures and returns on most investments (including endowments) were spectacular, so an investment product that needed to make returns in excess of 10% a year in order to hit its target did not seem unreasonable.

Then interest rates (and investments returns) started to tumble and with that came the reality that many endowments would not hit their original target, leaving homeowners needing to find extra cash to repay their mortgages. With hindsight, with-profit endowments are simply the wrong option for saving towards a fixed target on a fixed date.

If you are concerned about your mortgage repayment, you can gain total peace of mind by switching to a repayment mortgage. Switching an existing mortgage while keeping your original endowment will mean increased monthly payments though, as each month, part of your loan will be repaid as well as the interest. One option to reduce costs would be to switch just part of your mortgage to a repayment whilst using the proceeds of your endowment when it matures to repay the rest.

Another option is to pay a lump sum off the loan at the time of switching. If cash isn't readily available for this then you might consider selling your endowment policy and paying the proceeds of the sale into your mortgage.

When you take away the need to hit a fixed target, with-profit endowment policies are actually low risk investments with a strong performance record and so there are plenty of investors who want to buy them and will pay more than the surrender value.

Then, to find out how much you could sell your endowment policy for, you can contact an endowment buyer - also called a market maker - who will give you a free quote to buy your policy, but before you do this you should consider your options.

If you do have the money to pay the fees, never forget that getting the opinion of an independent financial advisor is often a good plan; sometimes getting the opinion of more than one can prove to be even more of an advantage and can provide the sort of knowledge and expertise that could really help you to sell your endowments at the right price. The research and work could be done on your own, but many find it far less stressful and often a lot safer to seek the advice of professionals.

The most important thing to remember is that one has to think very carefully before taking action with their investments - take the time to research and consider everything before selling your endowment policy.

Rate this Article: Current: 0 / 5 stars - 0 vote(s).

Article Tags: Endowments

Article Source: http://www.articlesbase.com/investing-articles/what-went-wrong-with-endowments-and-what-can-you-do-about-your-mortgage-426387.html

Print this Article Print article   Email to a Friend Send to friend   Publish this Article on your Website Publish this Article   Send Author Feedback Author feedback  
About the Author:

Policy Plus are endowment experts helping you get more money for your policies endowments. offer a trusted and reliable service you know you can rely on. Submitted by search engine marketers at http://www.webrepairservices.co.uk

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Comment on this article Comment on this article
Your Name
Your Email:
Comment Body
Enter Validation Code: Captcha


Related Articles

No Physical Exam Whole Life Insurance - Good Deal or a Scam?
By: Joe Stewart | 06/03/2007 | Finance
Free Finance articles for use on your Finance related website. Find articles of the subject of Finance

Is There Really Much Difference Between Term and Whole Life Insurance?
By: Joe Stewart | 03/04/2007 | Finance
Free Finance articles for use on your Finance related website. Find articles of the subject of Finance

Education Sponsor News
By: Nicole McIntosh | 20/06/2007 | Education
Education related free articles.

Teacher Education Sponsor
By: Louise Anderson | 22/06/2007 | Tutoring

Scholarships Sponsor
By: Nicole McIntosh1 | 23/06/2007 | Education
Education related free articles.

Secrets to Minimizing the Costs of College That the Schools Don’t Want you to Know
By: Bob Proctor | 18/02/2008 | College and University

Do you Only Rely on your High School Guidance Counselor for College Advice?
By: Bob Proctor | 18/02/2008 | College and University

Asset Allocation for Foundation and Endowment Investment Portfolios
By: Steve Selengut | 12/03/2008 | Finance
Free Finance articles for use on your Finance related website. Find articles of the subject of Finance

Got a Question? Ask.

Ask the community a question about this article:

Q&A Powered by:
Powered by Yedda 

Latest Investing Articles

Investors Guide To Bulgaria
By: Karl Hopkins | 10/10/2008
Bulgarian country guide providing useful information, history and property investment tips.

An Investors Guide To Canada
By: Karl Hopkins | 10/10/2008
Canadian country guide providing useful information, history and property investment tips.

Bloodletting
By: MTnews | 10/10/2008
Daily Market Commentary for October 10, 2008 Written for day traders, active traders and investors. A review of the market activity for the day, economic data plus, world news from Millennium-Traders.Com

Understanding The Investment Power Of OTC Stocks
By: Nir Dotan | 10/10/2008
For someone who is not very well-versed with financial terms and jargon, trying to jump into investing in OTC stocks is a hard thing. You will have to deal with a lot of different terms and principles which might be confusing in the beginning, but as you get the hang of it, it will be easier and more manageable.

What Should I Do If I Intend To Invest In Penny Stocks?
By: Nir Dotan | 10/10/2008
Many kinds of stocks are traded on stock exchanges. The price, market capitalization, and the stock exchanges where these stocks are traded vary. Penny stocks are stocks with a low value and a low market capitalization.

SEC Filings To Check When Choosing Small Cap Stocks
By: Nir Dotan | 10/10/2008
Companies are obliged to produce and made publicize, fundamental information and statistics for their shareholders and prospective investors. This will eventually provide them with essential facts and information that may guide them in investing.

Are You Investing 401(k) Money in Real Estate?
By: Gordon Hall | 10/10/2008
First of all, What is a 401(k)? I will try and give you a shortened version. A 401(k) is an employer sponsored retirement plan run under section 401(k) of the Internal Revenue Code. A 401(k) lets an employee save for retirement and at the same time defers taxes on his savings and the earnings associated with them until he retires.

A Simple Guide To Buying OTC Stocks
By: Nir Dotan | 10/10/2008
OTC Stocks or over the counter stocks are usually offered by startup companies who have not yet met the requirements needed to be publicly listed in registered stock exchange companies. OTC stocks are offered through Pink Sheets or Over the Counter Bulletin Board or OTCBB.

More from Derek Both

Why Buy Property In Paphos?
By: Derek Both | 17/09/2008 | Investing
At the Cyprus coast in the southwestern region lies a beautiful chunk of land that is known as Paphos.According to history, Paphos was the commercial and information center of Cyprus. The local people believe that the town was built at the birthplace of the Greek legend goddess of love, Aphrodite.

Why Invest in Property in Turkey?
By: Derek Both | 24/07/2008 | Investing
Have you ever considered investing money in Turkey? It is slowly growing to become a very popular investment destination, for the country has a very high growth potential.

Websites Make Finding Investment Property Easier Than Ever
By: Derek Both | 02/06/2008 | Investing
There was a time when looking for investment property was a stressful and time consuming task because there weren't many resources available.

Europe Is Top Destination For Property Investment
By: Derek Both | 02/06/2008 | Investing
A recent study has revealed that six out of the top 10 most popular property investment destinations are located within Europe.

The Different Types Of Air Conditioning
By: Derek Both | 19/05/2008 | Technology
Nowadays you get so many different types of air conditioning units it can be difficult to know where to start.

Why Business Travel Blogs Are Helpful
By: Derek Both | 16/05/2008 | Travel
Since the popularity of the internet has soared over the last decade it has now become virtually impossible not to find what you are looking for.

Endowment Policies For Those Starting Out
By: Derek Both | 07/05/2008 | Finance
Endowment policies can seem like a daunting prospect to those who have no idea what they are, what they do and how they work. As a result of this many people choose to live in ignorance about them and never enquire about them or find out what they really are.

Information About Auctioning Endowment Policies
By: Derek Both | 06/05/2008 | Investing
Auctioning endowment policies is actually quite a common thing to do and those who do it have various reasons for doing so.

Article Categories






Give Feedback

Sign up for our email newsletter

Receive updates, enter your email below