Endowment mortgage,

Definition of Endowment mortgage:

1. A mortgage linked to an endowment insurance policy which is intended to repay the capital sum on maturity.

2. Loan arrangement under which only interest is paid to the lender while the principal repayment installments are paid into a life insurance policy which matures on the same date the mortgage becomes due. Compare with repayment mortgage.

How to use Endowment mortgage in a sentence?

1. For the first time buyer this choice will be between an annuity mortgage and an endowment mortgage.