In the 80's endowment policies were all the rage, for first time buyers and home-owners alike, they promised massive returns by combining investment growth with life insurance. In theory the endowment policy should grow over a period of 25 years so that the policy holder has a large lump sum that is capable of repaying the original loan and leaving some excess to play with. However, now in 2008 the reality is quite different.
We shouldn't be shocked at the current state of Britain's property market, the same happened in the early 90's. If you can recall back to the late 80's everything was peachy in regards to housing, with plenty of property available to buy or sell and the rise of the infamous property developer began. However what goes up must come down and as the crest of the property wave peaked it inevitably came crashing down on all those riding it. This vicious cycle has been repeated over the last 15 years so why is it that victims are surprised by their financial fate? Perhaps the government warnings should have been clearer? There could have been better advice made more available for how to deal with the impending doom and what the public should be doing with their money, other than hysterical consumer spending.
The doom and gloom continues as food and oil prices veer skyward, the cost of bread rising 15% over the past 12 months and the increase of fuel prices have the potential to reach 113 pounds per barrel in a couple of years. The exchange rate is also less than favourable as the pound hits a record low against the euro. So why is the UK's economy moribund when the remaining G7 nations are looking forward to slow but steady growth? And is there anything the fair citizens of this country can do to claim back the money they were promised during the prosperity 20 years ago?
Presently house prices are falling at 2500 pounds per month and of course with the syndicated credit crunch people are struggling to pay off their soaring mortgages or see any return on their original investment. Panic sweeps through the nation swiftly but we shouldn't wave the white flag just yet, rather than surrender, sell. It's a good time for all those with endowment policies to put them into practise before the recession sucks that capital into its black-hole entirely. Given our current predicament it is unlikely your endowment will ever pay off your mortgage, contrary to what you were told when you took the loan out all those years ago. So instead of trading your endowment policy with your insurer, shop around the open market and see if you can't get a better price. There are some very well established companies out there that will buy and sell your endowment policy. You can verify their reliability by checking they're a member of APMM and regulated by the Financial Services Authority. Endeavouring down this route may save you tens of thousands of pounds and keep you afloat of repaying your mortgage.
Author Resource:-
John McE writes articles on a number of subjects including selling endowments for more information visit AAP
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