Endowment alternatives

Bongolo

Hi all,

Brief history, I declared bankruptcy in Jan 07 and was discharged in October 07. I had a mortgage in 1998 which was cleared in 2002 and was never defaulted on.

I am now starting to save a deposit in the hope of purchasing again. I was wondering if an endowment has to be attached to a mortgage or could I start one now and when I am in a position to buy I can show that I have this in place already?

Or are there better alternatives?

I can easily put £100 a month in but more often than not can put £400 a month, this money is not guaranteed though so I can't commit to more than £100, I would like something flexible?

Sorry of these are dumb questions but I've been out of the financial loop for a while.

Tia

Annisele

Endowments are very much out of favour now - and even when they were popular, starting an endowment before you'd bought a house was usually considered poor advice.

Given your credit history, you'll want as large a deposit as possible - so I think you should just save in a high interest account.

dunstonh

The last mainstream provider withdraw their endowment in 2003. It is not just that they are out of favour but no longer available.

Most lenders will no longer issue interest only mortgages. So, you will have to look at the capital and repayment option.

Bongolo

Ok, thank you for your advice