There are some people who do not know how to make good use of an endowment mortgage. This type of mortgage loan may be considered as one of the most controversial loans today, however, there are many ways to take advantage of an endowment mortgage if you only know how. For this to be possible, you must first be aware of the nature of endowment mortgages, after which, you have to take note of the risks behind such a type of mortgage loan. When all of these steps have been done, it would now be easy to take advantage of an endowment mortgage.
Endowment loans are a combination of two kinds of mortgages, which are bundled together with an endowment policy. Once the latter reaches its full maturity after its loan term ends, it will then be used to settle the mortgage. The danger behind this kind of investment is that there is a possibility that endowment policies might not completely pay off the total policy mortgage, thus causing an endowment shortfall. Due to this phenomenon, endowment insurance companies must constantly notify endowment policyholders regarding their balances for them to know their remaining debts.
The shortfall dilemma has been a very big problem in recent years, especially since 80% of endowment policies have been estimated to be unpaid for by policyholders. If individuals experience a shortfall, they will be receiving a “red letter” from insurance companies or lending service companies, where the high risk of deficit as well as the necessary actions to be undertaken, are explained in detail. On the other hand, if individuals or companies were on the right track in their mortgage payments, they would get the “green letter” instead. Another color-coded letter is the “amber letter” which still outlines the risk of the endowment not having enough to pay the mortgage, but is slightly lighter in terms of risk rather than the “red letter”.
But before reacting to the letters, some individuals or companies choose to make an endowment complaint. For ease, there are companies that help in raising such complaints, such as Claims Financial that is located in the UK. The great thing about this company is that it does not ask for a service fee if the claims do not win. They take care in getting the right records, evaluating the genuine value of the claim and making the negotiations with the other parties involved.
At times when the deficit is too high already, individuals or companies choose to sell the endowment instead. This may be a very hard decision, but economically and statistically speaking, sometimes this is the most probable decision. The sale of an endowment might be a hassle, but there are companies that aid in selling endowment policies like “Selling My Endowment” located in the UK as well. The company, which is supported by the TEP Exchange, provides an online service that aids in presenting policies to the market and then gives you a reasonable offer swiftly—sometimes within several minutes.