Norwich Union endowment mortgages see low payouts

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Norwich Union endowment mortgages see low payouts

Thu 19th Jan 2006

Norwich Union endowment mortgage policyholders or pension savers have been warned to expect a low payout this year.

The news comes despite the fact that its main profits fund achieved an overall return of 17.7 per cent before tax.

For example, a policyholder with a 25-year, £50 a month Norwich Union endowment mortgage maturing this month will receive four per cent less than had the same policy matured in 2005.

In a statement the insurer said: "In general, shorter-term policies show increases or small decreases compared to equivalent policies maturing a year ago, while those with a term of 20 and 25 years will generally be lower."

However, Norwich Union went on to say that in many cases an increase is seen when the surrender value of the policy a year ago is compared to the maturity value now.

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