Can you still get endowments or are they called something else?

JennyW_2

I'm a bit confused and don't wish to appear thick, but can you still get endowment policies or are they called something else?

We're thinking of increasing our mortgage and of course they have quoted us 2 monthly figures, one is a repayment figure and the other is interest only. Of the course the interest only is cheaper and would therefore need some insurance in place but I cant find anything on purchasing an endowment policy. Can anyone enlighten please?

Andy_L

Most people who go down this route invest in an equity ISA in order to pay off the capital.

JennyW_2

oh ok, so "endowments" no longer exist nowadays?

EdInvestor

Definitely past their sell-by date.

JennyW_2

so do you all take out ISA's to ensure the capital is repaid? If so, do I have to go via an independent Financial Advisor? I wasn't sure you could just get an on-line quote for this?

dunstonh

You dont have to go to an IFA but you would have to work out your own figures. i.e. what target growth rate to use, whether you want built in checks or not and what funds.

There are a couple of endowment providers still left but they are direct sale only (i.e. no adviser would touch them).

JennyW_2

dunstonh wrote:

You dont have to go to an IFA but you would have to work out your own figures. i.e. what target growth rate to use, whether you want built in checks or not and what funds.

There are a couple of endowment providers still left but they are direct sale only (i.e. no adviser would touch them).

perhaps the best way to go then is the repayment option. I just thought there were more options to cover an interest only figure

dunstonh

perhaps the best way to go then is the repayment option. I just thought there were more options to cover an interest only figure

ISAs are so flexible that there isnt a need for any other option nowadays. If you are an inexperienced investor, risk averse or don't want to have an IFA controlling it, then you shouldnt consider an investment backed mortgage.

If you accept investment risk and you are an experienced investor or want to use an investment specialist IFA, then an investment linked mortgage is still a valid option.

EdInvestor

Have you considered an offset mortgage?

They offer great flexibility - though they can be expensive if you have only a small amount of cash savings to set against the loan.