Sell off 'on cards' in endowment sector.

Financial Adviser, January, 2008

After the excesses of the Christmas period, endowment policy market makers expect many to offload endowment policies to generate cash, an expert is predicting.

Dan Farrow, chief executive of the TIS Group, which buys endowments through its subsidiary AAP, said: "With the average Briton now AGBP33,000 in debt combined with over-indulgent Christmas spending, a sobering reality will 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 remortgaging face doing so at higher rates.

AAP predicts that about 10m mortgage endowment policies are still in...

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