£50bn endowment black hole

ceos' evidence reveals extent of shortfall for mortgage endowments over next 10-15 years

The projected shortfall for mortgage endowments is in the region of £50bn over the next 10 to 15 years, the Treasury Select Committee heard from five CEOs of UK life companies last week. Over the past few years, life companies have been sending letters to mortgage endowment customers, graded according the FSA's system of red, amber and green. Each of the five groups - Standard Life, Prudential, Legal & General (L&G), Aviva (Norwich Union) and Royal & SunAlliance (R&SA) - had to present information to the committee on their current forecasted shortfalls. For Norwich Union policies, the a...