Please could someone explain to basics to an endowment mortgage and what it offers.

SonOf

My last endowment sale was 1995.  I was running about 50/50 on repayment vs interest only prior to that.   I only ever did unit linked and all mine were set up with a target growth rate of 4.4%.   I still remember the paragraphs on the reason why letter explaining it.   Thankfully, at 4.4% target, those shouldnt have had any problems.  I feel sorry for those that did them in the late 80s where 13% was common as a target growth rate.   That said, many of those people saved £20-£40pm on the monthly payments.  At £30pm that equates to £9000 on a 25 year mortgage.  So, a typical shortfall of £5,000 after paying around £9000 less is not too bad.  Plus, in the 80s, £30pm was a lot of money (3 tanks of petrol)

Imma_Number

Old_Lifer said:

My post of  17th September 2019 (thread title 'Aviva Low Cost Endowment') may perhaps be of passing interest as it gives my own experience of how low-cost endowment projections were calculated in the 1970's and how the shortfalls came about.

My typing ability is not great nowadays and it is easier  for me to refer to a previous post rather than type a lengthy new post.

https://forums.moneysavingexpert.com/discussion/comment/76281975/#Comment_76281975

(If my "View Selection Source" fu is correct)