What is an Endowment Mortgage?

This is an interest-only mortgage linked to an investment product. Most consumers who bought one were told that the policy would eventually pay off the mortgage at the end of its term and provide an additional lump sum. However millions of people now have a shortfall with no lump sum, in many cases, an endowment product’s return was insufficient to pay the outstanding mortgage.

Obligations of the Adviser or Sales Person for mis-sold Endowment Mortgages

How was this product mis-sold?

Compensation

Additional Information

Helpful PDF’s & Links

Mortgage Endowments

Provided by the FOS (Financial Ombudsman Service)

Mortgage Endowments – shortfalls and consumer action

Provided by the FSA (Financial Services Authority)