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What took the place of endowments?


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Might be a daft question, but I was asked today about endowments for interest only mortgages. I didnt know the answer!. I presume that financial institutions still require insurance to cover the mortgage at the end of its term. Do ISA`s pay out enough to cover that amount of money?.

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Hi. Having looked at an insurance company website, there are several ways to repay an interest only mortgage, like mutual funds, ISAs or some pension plans.

 

You can pay up to £10,200 per annum into ISAs, I'm sure you can do the maths.

 

Or people take out repayment mortgages. Insurance cover is advisable to cover the event of early death, in order to repay the loan for someone's dependants if they have them.

 

HB

Illegitimi non carborundum

 

 

 

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