Endowment Policy
This means you have to leave funds locked up into the policy for a certain amount of time for it to even break even.
Also as they are based on stock market fund manager performances many people have faced shortfalls for which they would have to pay off themselves or sell the property if there equity stake has increased.
Some policy providers advise on increasing the monthly payments to prevent this however borrowers on interest only mortgages argue they may have well taken out a safer standard capital and repayment mortgage when burdened with the additional cost and insecurity.
