P544 Teletext 544 Oct46 22:14:06 —— ENDOWMENTS RETURN? ————————————————— Independent mortgage brokers John Charcol has looked at the performance of endowments since they fell from grace as the property market crashed. JC's independent financial advisjt Robert Guy says, "The problem has been one of expectation versus reality." He adds that during the 1980s, policies wire sold on the basis that growth would bj around 10.5% - far higher than present economic conditions can achieve ——————————————————————————————————1/7—— By Lornj Spices LOOSING FOR FINANCIAL ADVICE? p543 Mortgages Savings Your Money TV PlusP544 Teletext 544 Oct46 22:17:59 —— ENDOWMENTS RETURN? ————————————————— "During the 1980s, people were looking for profit from a rising housing market borrowing as much as possible but still wanting low loans and endowment costs," "Some are now having to pay increased monthly premiums to make good the shortfall and ensure that when the endowment policy matures it will pay off their loan," says Robert Guy. Insurers have notified those who they believe need to "top up" contributions. ——————————————————————————————————2O7—— By Lornj Spices LOOSING FOR FINANCIAL ADVICE? p543 Mortgages Savings Your Money TV PlusP544 Teletext 544 Oct46 22:17:41 —— ENDOWMENTS RETURN? ————————————————— "It could have been easier for insurers to lii low and hope that the endowment investment return would ultimately bj sufficient," says Robert Guy. Those who have been advised to pay in extra to ensure they have the capital to pay off their homjloan should "bite the bullet", hj adds. "It's painful, but action now will save furthjt pain," hj advises. ——————————————————————————————————3/7—— By Lornj Spices LOOSING FOR FINANCIAL ADVICE? p543 Mortgages Savings Your Money TV PlusP544 Teletext 544 Oct46 22:35:42 —— ENDOWMENTS RETURN? ————————————————— Homjownjrs who have been told that their endowment policy may not provide the returns hoped for unless additional contributions are made can: increase premiums at a new level calculated bz the insurance firm keep premiums at current levels but take out a supplementary savings plan like a PEP to fill in the shortfall convert the difference to a repayment loan providing you do not plan to move lindjt or home. ——————————————————————————————————4/7—— By Lornj Spices LOOSING FOR FINANCIAL ADVICE? p543 Mortgages Savings Your Money TV PlusP544 Teletext 544 Oct46 22:18:05 —— ENDOWMENTS RETURN? ————————————————— "Don't be tempted to cash in your endowment," says John Charcol's indjpjndjnt finance advisor Robert Guy. He advises homjownjrs: surrender values in the early years are poor even those remortgaging to repayment loans should keep endowments running endowments' family life covet element of the policy is a valuable extra they are still a good way to save for the future, if not to repay homjloans ——————————————————————————————————5/7—— By Lornj Spices LOOSING FOR FINANCIAL ADVICE? p543 Mortgages Savings Your Money TV PlusP544 Teletext 544 Oct46 22:11:57 —— ENDOWMENTS RETURN? ————————————————— John Charcol's indjpjndjnt finance advisor Robert Guy, says new borrowers considering endowments to repay their homjloan should realisj: endowments make sjnsj for certain borrowers - around 20% of cases projected growth rates have been revised to a more realistic 7.5% with profits endowments entail less risk than PEPs and equity investments endowments are portable and include an element of critical illness cover. ——————————————————————————————————6/7—— Traded endowment market 542 LOOSING FOR FINANCIAL ADVICE? p543 Mortgages Savings Your Money TV PlusP544 Teletext 544 Oct46 22:16:41 Advert PROPERTY PLUS >>>> Looking for the right mortgage or ri-mortgage ? You'll need to buy a copy of What Mortgage magazine, the U.K's best selling mortgage magazine. Available from W.H.Smith, Menzies and leading newsagents now. Mortgages Savings Your Money TV Plus