endowment mortgage

noun

A type of mortgage (typically a loan to buy a house) where, over the term of the loan, the borrower's regular payments to the lender cover only the interest charged by the lender. At the same time, the borrower makes regular payments into a separate savings or investment plan. When this plan matures, the borrower uses the proceeds to repay the principal of the loan.

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Meanings

nounendowment mortgage (plural endowment mortgages)

plural endowment mortgages

  1. businessA type of mortgage (typically a loan to buy a house) where, over the term of the loan, the borrower's regular payments to the lender cover only the interest charged by the lender. At the same time, the borrower makes regular payments into a separate savings or investment plan. When this plan matures, the borrower uses the proceeds to repay the principal of the loan.

Synonyms & antonyms

Also see
endowment-linked mortgage
Cite this entry
APA

endowment mortgage. (n.d.). In WatkinsX Dictionary. Retrieved November 4, 2026, from https://dictionary.watkinsx.com/word/endowment%20mortgage

MLA

“endowment mortgage.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/endowment%20mortgage. Accessed November 4, 2026.

Chicago

WatkinsX Dictionary, s.v. “endowment mortgage,” accessed November 4, 2026, https://dictionary.watkinsx.com/word/endowment%20mortgage.

Source: endowment mortgage on Wiktionary, CC BY-SA 4.0.