Pay for 25 years - and it is still not your house

The endowment mortgages which were sold in the 1980s and 1990s are causing concern as they approach their termination. Around 86 per cent of endowment policies have not achieved the growth or bonuses which homeowners calculated that they might have - and 41 per cent may be 25 per cent under the estimated final settlement figure.

The government started to warn people back in 2003, when it found that 23 per cent of endowment mortgage owners could achieve only half the value of their original mortgage, yet 700,000 customers have failed to seek financial advice.

Fairinvestment.co.uk's chartered financial planner, Sharon Bratley, said: "Our statistics just go to show what a let down endowment policies were and still are. Those who have not yet done anything and are expecting a shortfall on their policy should act now.

"There are a number of options open to investors, one of these being to sell the policy. For those sitting on their endowment it might not be too late to sell; there are still plenty of investors out there who see endowments as a desirable asset.

"Alternatively, if you feel the risks associated with your endowment policy were not explained sufficiently at the time, you could have grounds for complaint and be eligible to file for compensation."

May 20^th 2008

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