Endowment payouts cut by Norwich Union
Norwich Union is cutting payouts on maturing mortgage endowments, with a typical mortgage paying out 4 percent less than a year ago. Norwich Union warned that payouts were likely to continue their decline since the expectation of “future investment returns has reduced”. Some customers with shorter term policies will enjoy higher payouts.
Of the 46,000 mortgage endowments maturing this year, more than half are expected to deliver a shortfall. Norwich Union expects to pay out £1million this year under its mortgage endowment promise payment scheme. This scheme was set up to assist customers facing endowment mortgage shortfalls. The Guardian has reported that around 72 percent of its endowment mortgages will return a shortfall. David Riddington of Norwich Union said “The amount we will pay may grow rapidly in the next few years as more policies mature.”
January 19th, 2009 at 3:04 pm
I took out a mortgage endowment plan in 1984 September for 25 years. I expected it to pay off my loan of 30000. MY shortfall will be large. Will the 6% PROMISED BY N.U in 2000 apply. I pay 57.70 per month. Willl NU use any of their massive surplus to bail out anyone like myself?