endowment mortgage

/ɪn'daυmənt ˌmɔ:gɪdʒ/ noun
a mortgage backed by an endowment policy
COMMENT: The borrower pays interest on the mortgage in the usual way, but does not repay the capital. Instead, he or she takes out an endowment assurance (a life insurance) policy, which is intended to cover the total capital sum borrowed. When the assurance matures, the capital is in theory paid off, though this depends on the performance of the investments made by the company providing the endowment assurance and the actual yield of the policy may be less or more than the sum required. A mortgage where the borrower repays both interest and capital is called a ’repayment mortgage’.

Dictionary of banking and finance. 2015.

Look at other dictionaries:

  • endowment mortgage — noun A form of mortgage in which the capital sum is repaid by the eventual proceeds from endowment assurance • • • Main Entry: ↑endow * * * endowment mortgage UK US noun [countable] [singular endowment mortgage …   Useful english dictionary

  • endowment mortgage — ➔ mortgage1 * * * endowment mortgage UK US noun [C] UK PROPERTY, BANKING ► a mortgage (= a loan to buy a house) on which you pay only the interest, and also have an endowment (= insurance policy) that is intended to provide the money to pay back… …   Financial and business terms

  • endowment mortgage — ► NOUN Brit. ▪ a mortgage linked to an endowment insurance policy which is intended to repay the capital sum on maturity …   English terms dictionary

  • Endowment mortgage — An endowment mortgage is a mortgage loan arranged on an interest only basis where the capital is intended to be repaid by one or more (usually Low Cost) endowment policies. The phrase endowment mortgage is used mainly in the United Kingdom by… …   Wikipedia

  • endowment mortgage — UK / US noun [countable] Word forms endowment mortgage : singular endowment mortgage plural endowment mortgages a mortgage with an endowment policy that is intended to pay back the money you have borrowed after a particular number of years …   English dictionary

  • endowment mortgage — A mortgage in which repayment of the principal is made principally by means of an endowment assurance policy. In the UK in the 1980s and 1990s, many first time home buyers were encouraged to take out this form of mortgage (which earns the… …   Big dictionary of business and management

  • endowment mortgage — Fin a long term loan, usually for the purchase of real estate, in which the borrower makes two monthly payments, one to the lender to cover the interest on the loan, and the other as a premium paid into an endowment insurance policy. At the end… …   The ultimate business dictionary

  • endowment mortgage — noun Brit. a mortgage linked to an endowment insurance policy which is intended to repay the capital sum on maturity …   English new terms dictionary

  • endowment mortgage — ➡ mortgages * * * …   Universalium

  • Mortgage loan — Mortgage redirects here. For other uses, see Mortgage (disambiguation). Finance Financial markets …   Wikipedia

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