Most endowment policyholders still believe their mortgage endowment will hit its target amount at maturity.
According to research conducted by Norwich Union, of the 201 people polled, 53% are confident of their plans. But of those anticipating a shortfall none faced real financial difficulties, with most disappointment stemming from potential loss of the tax-free lump sum. None of the respondents said they would surrender their policy at a loss.
Mike Urmston, chief actuary at Norwich Union, said: ‘While there are some concerns among policyholders as you would expect, the majority facing a shortfall say the situation will lead to disappointment, rather than financial hardship.’
Those most confident are based in Scotland and the North and have had had their policy for more than 16 years. Of those facing shortfall 70% have either made, or intend to make, alternative arrangements.