Standard Life has decided to suspend its mortgage endowment promise due to poor investment conditions over the past four years.
The promise required Standard Life’ capital to increase from levels in 2000, measured by reference to its free assets at the time the promise was made. It now does not expect the necessary growth to 2000’ levels in order for it to keep the promise.
The Standard Life mortgage endowment promise was introduced in September 2000 with the aim of providing financial support to mortgage endowment customers whose policies at the time were most likely to fall short of their target amount at maturity.
Standard Life intends to provide top-up payments to eligible policy holders where prudent and make maximum top up payments for all eligible policies that mature on or before December 31 2005. The top-up payments will be assessed at least annually.