For those considering getting an endowment mortgage to handle the current economic crisis, experts are warning that the payout rates for this type of home loan are continuing to fall. Although most endowment mortgage funds have actually been producing gains, the amount is not being passed onto the endowment mortgage holders. ”With increased volatility in world stock markets this year the prospects for improved bonus returns for 2008 don’t look promising,” said James Caldwell Director of Fairinvestment.co.uk. “With Profit Endowment policies are designed to provide a level of insulation against turbulent investment markets however it is the stronger UK insurance companies who are better positioned to smooth investment returns over the long term. These endowment mortgage companies have been notifying consumers that the expected rates of return are going to be much lower than anticipated. If you already have an endowment mortgage and have not yet gotten a letter, experts feel that you should expect one soon.”Policyholders whose endowments continue to under-perform should have received a warning letter from their insurance company outlining the potential shortfall. It is important to address any potential shortfall in your endowment before it is too late,” he continued.
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