The financial term endowment mortgage means, “a mortgage loan arranged on an interest-only basis where the capital is intended to be repaid by one or more endowment policies.” Generally the term “endowment mortgage” is used by the lenders and the customers to refer to this kind of arrangement. The term is primarily used in United Kingdom for colloquial purpose and not a technical legal term. Generally endowment policy has two distinct agreement policies, one with the money lender, and the other with the insurer. In endowment mortgages, the customers only pay the interest on the capital borrowed and the borrower makes all payments related to an endowment policy. In the UK endowment policies are popular; however, endowment mortgage and endowment policies are not as popular in US and Canada.