Endowment policy sales set to rise as Britons face the sobering reality of post Christmas debt! Thursday 10 January 2008 PDF Print With the festivities of Christmas and the New Year over, concerns about debt and debt servicing will drive a significant increase in enquiries from consumers wanting to sell an endowment policy says aap. The UK’s largest endowment policy market maker (aap), is predicting that spiralling debt, fuelled by a rise in credit card spending over Christmas, coupled with increasing mortgage rates will see many more concerned endowment policyholders attempting to sell their policies. It is likely that in order to achieve a higher price for an endowment policy, more people will be using the secondary market as opposed to cashing their plan in through the Life Company. Dan Farrow, CEO of aap’s parent, the TIS Group, comments: “With the average Briton now £33,000(1) in debt combined with over-indulgent spending over Christmas, a very sobering reality will begin to dawn on consumers as the first credit card statements start to arrive. In addition, for many Britons on historically cheap fixed rate mortgages that are approaching the end of their terms, the financial situation is only likely to get worse as those re-mortgaging face doing so at much higher rates. “Endowment policyholders who find themselves struggling to pay off Christmas and New Year debts on top of meeting their mortgage repayment costs and who are now considering surrendering their policy, should remember that there is an attractive alternative to surrendering a policy to the Life Company in the form of a market maker such as aap.” Many endowment policies were traditionally used as a mechanism to repay a mortgage at the end of the mortgage term. There are approximately 10 million mortgage policies still in existence, however around eight in ten(2) endowment policies in force are unlikely to pay off the full mortgage they were taken out to cover. Mr Farrow added: “When you consider that the average with-profits endowment policy is growing by 6.8%(3) per annum, whereas a policy should grow by more than 8% a year to meet the full mortgage repayment costs, it is hardly surprising that many endowment policyholders, who previously felt secure about their repayment costs because of booming property prices, are re-assessing all their finances. “Finding a solution to the projected shortfall on their full mortgage repayments will be one of the first challenges for many in 2008.” aap offers an alternative solution to surrendering a policy and potentially up to 35% more cash than surrendering it to the original provider. ~ Ends ~ For more details please contact Andy Mossack email@example.com 020 8282 8072 ABOUT aap: aap was established in 1968 and is the UK’s oldest and largest specialist in the buying and selling of endowment policies. The company has been involved in the purchase of over £1 billion of with-profit endowments. aap is authorised and regulated by the FSA and is a member of the Association of Policy Market Makers (APMM). To learn more about aap go to: www.aap.co.uk This press release was distributed by ResponseSource Press Release Wire on behalf of MediaCo (UK) Ltd in the following categories: Personal Finance, for more information visit http://pressreleasewire.responsesource.com/about.