The market for endowment mortgages virtually died in Ireland a few years ago but seems to still be alive and well in Britain where they still account for 30 per cent of new mortgages.
The main argument against endowments is the high commission earned by sellers and the fact that, in many cases, the wrong products were allegedly being sold to borrowers to generate the maximum commission.
A recent survey in Britain showed that three-quarters of buyers of endowment policies surrendered their policies before they mature.
Now, the Metropolitan Police fraud squad in London has launched an investigation into the alleged misselling of endowment mortgages by the financial services industry in Britain The outcome of that investigation will be illuminating.
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