Endowment shortfall hits six million

Some 61% of endowment mortgage holders contacted in a mass mailshot by the Association of British Insurers (ABI) may not see returns sufficient to cover their mortgage. The dispatch of more than 10 million letters warning investors of the shortfall is under way, the ABI said. So far, 1.25 million letters have been sent, of which 39% were green letters, telling investors they were on track to pay off their mortgages, and 26% were amber, suggesting extra payments into the endowment policy were advisable. The final 35% were red, indicating the policy was unlikely to pay enough on maturity t...