An endowment mortgage is a special type of interest only mortgage that is accompanied by an endowment policy which uses stock market investments as a means of repaying a mortgage. In recent years many consumers have found that their endowment policies are simply unable to repay the mortgage. These endowment shortfalls have lead to mortgages into retirement.

It is possible to get mortgages which are specifically for retired individuals and these are often suitable where an endowment policy has failed to repay a mortgage. One such scheme is the Halifax retirement mortgage which is essentially the same as an interest only mortgage in that monthly contributions are made to cover any interest.

This is beneficial in that the balance owed does not grow unlike with an equity release scheme in which interest is essentially rolled into the outstanding amount owed and continues to grow.

As with all mortgages and equity release schemes it is important to fully research all options and ensure that you make the right decision for your needs. Do not allow the stress of an endowment policy shortfall to pressurise you into making a poor decision about the way in which you release equity in your home to pay back the mortgage.

It is also advisable to take independent financial advice about your options. With the Retirement Mortgage you can also request a personalised financial illustration of how the mortgage will change over time. Remember that your twilight years should be the least stressful possible and therefore it is of the essence that you make the best choice at this stage.