Endowment mortgages are suffering a further blow with Barclays became the latest lender to pull the plug on selling the controversial policies.
Barclays is saying it sold its last endowment on December 30 following a 70 per cent decline in applications over the previous six months.
The move swells the ranks of providers who have axed endowments following criticism they will leave consumers with a mortgages shortfalls. These include Natwest, HSBC and Nationwide.
Barclays spokesperson Liz Neild says: “The outlook for endowment growth rates is not good.”