Norwich Union has warned there is a "high risk" 90% of its mortgage endowment policies will not pay off people's home loans, despite its main investment fund notching up a return of almost 12% before tax last year, says the Guardian .
The insurer also announced fresh cuts to payouts on 25-year mortgage endowments. It said 89.5% of the group's mortgage endowments were now in the "red" danger zone, where there is a high risk they will not pay off the home loan, with just 10.5% "green" (on track to reach their target). A year ago Norwich Union said 72% of endowments were red, 21% were "amber" (a significant risk of a shortfall) and 7% green, reports the paper. HOUSE PRICES have fallen for the first time in 15 months on an annual basis, suggesting inflation in the housing market has reached a plateau, according to the...
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