Home Add to Favorite Contact Submit  
             27 November, 2020
 

    
Category:  Articles » Finances » Personal-Finance

 

Commercial Endowment - Your Options

Popularity:
         Views: 1500
2006-06-18 03:01:44     
Article by Joseph Kenny

Property development is big business. The rash of TV programmes about home makeovers and renovations reflects our current obsession with property as a way to make big bucks, quickly. It may seem a failsafe way to make a killing – buy a shabby house, paint the place magnolia, add laminate flooring, and bingo!

In reality, of course, property development means a lot of hard work, and involves a certain degree of risk. Many developers will have more than one property on the go at once – and to cover repayments can end up being an expensive business. If you factor in the time it takes to renovate a property, then advertise and sell it, it adds up to several months when you will have to be paying out on a mortgage. Not only that, but the fact that rates for commercial property are generally higher than for residential mortgages, and it can be a costly period indeed. Other reasons you may require a commercial mortgage is if you are buying business premises or buy to let property. For all of these needs, you will want to keep your monthly outgoings as low as possible.

One solution is taking out an interest only mortgage, such as an endowment mortgage. This will minimise your monthly repayments, and the extra security provided by the endowment policy could result in the lender offering a better interest rate for your mortgage. You will be paying interest instalments, plus separate amounts into an endowment policy. The payment of the capital, or principal will come from the proceeds of the endowment policy. (Bear in mind that the tax benefits have changed since endowments had their heyday in the 80s and 90s.)

Endowments – The Bad Press

In recent years there have been scandalous reports about endowment policies being mis-sold – thousands of people lost out when their policies failed to produce the lump sum needed to pay off the capital. The FSA, after investigating, reported that the problem had been exaggerated – most people with endowment policies are as well off as those with other types of mortgage. However, endowments are investments linked to the stock market, and as such do represent a financial risk. Insurance companies were forced to pay compensation to some investors who had received bad advice when they took out an endowment policy.

If you end up with an endowment policy that has not produced the money to pay off your capital, you may be entitled to compensation if the advice you received was not sufficient to make you aware of the risk involved. You can also consider selling your endowment in the traded endowments market, which could make you more than surrendering it to the insurance company.

URL: http://www.ukpersonalloanstore.co.uk/
Print article      Bookmark this page
Related Articles 
Get Unclaimed Safety Deposit Box Contents Back (Popularity: ): Millions of dollars is left behind every year in unclaimed safety deposit boxes; that money remains with the government. In every annual audit, banks give the content of safe deposit to the government after a specific period of time. The reason the content of safety deposit escheated to the government is that it is being lying in the bank untouched from the owner or heir of the deposit.Many times, people ...
Financial Planning- A planning to achieve one's financial goals (Popularity: ): While one cannot predict the future,one should certainly be better prepared for it as all of us have our goals to be fulfilled at every stage of life and these goals will only be achieved if one has done the financial planning. So, its better to start planning now as prevention is always better than cure. Financial planning is a systematic approach whereby the financial planner maximizes customer's existing financial ...
Getting Your Head Around QROPS (Popularity: ): More Britons are choosing to work and retire abroad than ever before. For most that means transferring their UK pensions into overseas schemes. If you are in this position or thinking about retiring overseas, then you really need to understand one key phrase: qualified recognised overseas pensions scheme or QROPS for short. However although they offer fantastic advantages for the growing number of expats, few people really know what they ...
Why You Need to Establish Your Personal Economy (Popularity: ): Consider the concept of your "Personal Economy." What images does this term conjure up? Many would jump to the conclusion that it revolves around being your own boss, bringing in huge sums of money per month, etc. I'm not going to discount that kind of thinking entirely, but there is a lot more that goes along with it, which I'll address in a second.The Institutional Economy that is predominant today ...
Wells Fargo ATM Locations - Easily Accessible (Popularity: ): When you need money, the last thing you want to do is search for an ATM location. Using machines from other banks can rack up fees. Rather than spend a portion of your hard-earned cash on senseless fees every month, choose a card that offers many locations.Wells Fargo is a trusted name when it comes to financial institutions. For years, people have been turning to Wells Fargo for their banking ...


Related Business 
Carnegie Endowment for International Peace (Popularity: ): The Carnegie Endowment for International Peace is a think-tank with research focusing on the economic, political, and technological forces driving global change, with particular emphasis on nuclear non-proliferation. The Endowment publishes the "Foreign Policy," one of the leading international relations journals read in North America.
Carnegie Endowment for International Peace (Popularity: ): The Endowment conducts programs of research, discussion, publication, and education in international affairs and U.S. foreign policy.
European Policy Exchange Ltd. (Popularity: ): UK based market maker for German second hand endowment policies offering institutional investors access to German traded endowment policies (TEPs).
Honest Binary Options Review Site (Popularity: ): Are you a new Binary Options trader? Your Binary Options current Broker Sucks? Or maybe you’re a victim of a Binary Options scam? Binary Options that suck is your brand new friendly home. Our main goal is to provide a safe place for all Binary Options traders, new or veteran, in which they can find honest and unbiased reviews about different Binary options brokers, so they can trade easily and ...
Endowment Assurance Plan: LIC Jeevan Anand (Popularity: ): Life insurance provides an innovative plan which is Jeevan Anand that combines the benefits of an Endowment plan and a Whole Life plan. Under this plan you can pay premiums for a limited period of time. After the premium term is completed then the Sum Assured along with accumulated bonuses plus some final bonus will be allocated to the policyholder.
Commercial Outdoor Benches (Popularity: ): Online park and garden bench provider for today's modern facilities specializing in residential and commercial benches and garden seating for parks, schools, lodges, campgrounds, and municipalities. With precise bench mounting options, structural bench conformity, and a multitude of color options, these benches capture the very essence of outdoor furniture.
Options Trading Education (Popularity: ): What is Options Trading? What is options trading useful for in today's volatile markets? Get started in the world of options trading. Learn trade options strategies.
Phi Kappa Psi Fraternity (Popularity: ): Composed of sections for general fraternity, Endowment Fund, and a members only community. General section contains history, membership requirements, chapter resources, directories and official vendors. Endowment Fund section contains information on scholarships, news and directors. Private community contains news, bulletin board, member search, address book and career network.
Binary Options Brokers (Popularity: ): Learn how to trade binary options online. Find the best binary options platforms on the internet and read our strategy guides on how to profit from binary options trading.
What If Options - Options Strategy (Popularity: ): What-if Options is a web portal for testing financial strategies. A special focus is given to strategies that involve buying and selling options. With WIFO tools it’s possible to model and test direction-neutral strategies that are based on risk management rather than prediction of the future.