View more on these topics

Private Label offers Windfall for endowment policyholders

Private Label believes its new flexible mortgage could solve the endowment cri-sis for policyholders who are being asked to pay out higher premiums.

The mortgage packager says flexible mortgages were originally introduced to meet the needs of borrowers who wanted to pay off their mortgage early.

But Private Label says it is becoming harder for borrowers to overpay on their mortgage as property prices soar. This means they lose the benefits of having a flexible product.

Its new Windfall mortgage pays borrowers a windfall on redemption after five years. This increases by 1 per cent each year from 5 per cent after year five until year 15 when borrowers receive a 15 per cent windfall.

Private Label suggests borrowers with endowments might be able to switch to the product and use the windfall to fund any shortfall in their policy.

But it says borrowers with endowments must be careful they are not hit by a redemption penalty from their current lender before deciding to make the switch.

Director of marketing Tony Fisher says: “Subject to careful case-by-case compliance scrutiny, this product could be of benefit to those facing endowment shortfalls.

“Instead of increasing premiums to be sure of repaying the mortgage, some borrowers might be able to maintain the same premium because the mortgage will reduce on its own.”

The mortgage is penalty-free at all times, with daily interest charges and a 1 per cent discount for the first six months, making the initial rate 6.78 per cent.



The problem for most IFAs handling clients&#39 investments is that it is difficult to maintain above-average performance. It is also time-consuming and tax-inefficient to buy and sell unit trusts as capital gains tax liabilities may arise.I believe Premier Asset Management has the answer for most medium-sized investors with its c-lect portfolios, all of which have […]

Mmmm means Europe

The future is looking bright for European funds but the challenge for IFAs is in picking the consistent front-runners. The answer lies in seeking specific equity opportunities within Euroland rather than tracking its entire performance.Europe has been one of the best-performing territories this year and most fund managers expect this to continue. Over the past […]

IHT shouldn&#39t happen to a Pet

The concept of a potentially exempt transfer was introduced in 1986 at the same time as inheritance tax replaced capital transfer tax.A Pet is a transfer of value that will not trigger an inheritance tax charge if certain criteria are met.The first criteria for being a Pet is that the transfer of value must be […]

Knotty problems

Tie the knot or lose your pension. Well, at least part of it. That is the message proclaimed loud and clear from many pension schemes – both occupational and personal – and for many annuities paid to those already retired.Last week I looked at the situation relating to the definition of legally married spousses in […]

Flexible reversionary trusts and estate planning

The suitability of different estate planning solutions will depend on the individual’s own circumstances, needs and objectives. When considering the different solutions available there is a trade-off between inheritance tax (IHT) efficiency and access. Overall a flexible reversionary trust provides a greater level of flexibility than a discounted gift trust and can offer individuals a […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm