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YOU ARE HERE: Home > News > 2002 > One in Three Endowments Will 'Definitely' Fail to Pay Off the Mortgage

News 2005 2004 2003 2002 One in Three Endowments Will 'Definitely' Fail to Pay Off the Mortgage 2001 RSS feed available

One in Three Endowments Will 'Definitely' Fail to Pay Off the Mortgage That is the view based on the latest news from the Association of British Insurers (ABI) and the figures from the first 1.25 million 'traffic light' letters sent out as part of the industry's regular updates to endowment policyholders. Not only that, but the news is that more than 60% of policyholders are likely to face a bill to top up their mortgage due to an underperforming endowment policy. The figures released by the ABI today make stark reading: April 2000 to June 2001 April 2002 Change Green 54% 39% - 15%pts Amber 31% 26% - 5%pts Red 15% 35% + 20%pts Additionally, figures also showed that the number of endowment policies in existence had dropped by 500,000 to the curent figure of 10.2 million policies. A drop caused by a combination of poor sales, expiring policies and a public that has had enough. Whilst ABI spokeswoman Leonie Edwards advises "not to panic", that is cold comfort since it is what was advised two years ago when only 15% of the letters were red. But with more than double the number of red letters this time around, most people want a less risky or volatile solution than "setting up a second savings plan". For anyone with a mortgage there is one way to protect your home form a impending shortfall and ensure your mortgage will be paid off.   Other Endowments News 07-01-2005: Bonus Cuts Expected for With Profits Policies   13-05-2002: Protecting Your Home Against Endowment Shortfalls   24-09-2001: Waiting for the Traffic Lights to Change   01-09-2001: Endowment Inaction Could Leave You Homeless   Elsewhere on the Web Ananova: FSA Defends Handling of Endowment Shortfalls Ananova: Watchdog Proposes Reforms for With-Profits Funds FT Your Money: No Action on Endowments BBC News: Endowments Hit Further BBC News: Friends Provident in Endowment Warning BBC News: Your Endowment Experiences Last Updated Monday June 5th 2002

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