Endowment Mortgages
mortgage glossary
Endowment-linked mortgages are the main alternative to a repayment mortgage. These mortgages were very popular in the 80's and 90's.
Lenders will advance you money and only ask you to pay the interest back each month. They still want you to pay off the loan eventually, of course, but they are happy for you to do this by taking out a life insurance policy for an agreed length of time (usually 25 years). When the policy matures, the lender takes repayment of the money owed to him, any surplus is yours.
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