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Tel: 01671 403080

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Endowment

How does it work?

You make two payments per month. One to the lender to repay the interest on the amount borrowed, the other to an insurance company for an endowment contract. There are mainly two types of endowment: unit linked or with profits. Both invest in a broad range of assets including stocks and shares. The capital in the endowment aims to build up over the term of the mortgage to repay the outstanding capital, although to achieve this the investment performance needs to be sufficient to build up the required capital and this performance cannot be guaranteed.

ADVANTAGES:

This type of repayment vehicle is flexible since:

  1. You can take the endowment policy with you if you move home or change mortgage lender.
  2. Endowments usually include some kind of life cover and some also include critical illness cover.
  3. If the endowment contract performs well, you may accumulate more funds than required to repay the loan.

DISADVANTAGES:

  1. Endowments are not risk free as there is investment in the stock market.
  2. There is a possibility your fund may not have built up sufficiently to repay the capital.
  3. You must keep a watchful eye on your fund's performance to help prevent this happening.

THE VALUE OF INVESTMENTS AND THE INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.

A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

You can choose how we are paid. We can either accept commission from the lender or you can choose to pay on a fee basis. Should you choose to pay a fee we will usually charge 0.5% of the loan amount subject to a minimum of £250.00. If the commission from the lender falls below £250.00 you will be charged the difference. We can also arrange a combination of these options.

For example, for a mortgage of £100 000 we will charge a fee of £500 (£100 000 x 0.5%)


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Company address:
Marr Financial Services Ltd, Central Office, 61 Victoria Street, Newton Stewart, Wigtownshire, DG8 6NL
T: 01671 403080
F: 01671 402549

Email: advice@marrfinancial.co.uk

Registration address as company address
Registration number: SC275449
Registered in: Scotland

Marr Financial Services Ltd is authorised and regulated by the Financial Conduct Authority.

Marr Financial Services Ltd is entered on the Financial Services Register (http://www.fca.org.uk/register/) under reference 705884.

The FCA do not regulate National savings products, loans, Will writing, Commercial Mortgages and some forms of buy to let mortgages and inheritance tax planning.

The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

Telephone: 01671 403080 | advice@marrfinancial.co.uk

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