Property development is big business. The rash of TV programmes about home makeovers and renovations reflects our current obsession with property as a way to make big bucks, quickly. In reality, of course, property development means a lot of hard work, and involves a certain degree of risk.

Other reasons you may require a commercial mortgage is if you are buying business premises or buy to let property. One solution is taking out an interest only mortgage, such as an endowment mortgage. This will minimise your monthly repayments, and the extra security provided by the endowment policy could result in the lender offering a better interest rate for your mortgage.

You will be paying interest instalments, plus separate amounts into an endowment policy. The payment of the capital, or principal will come from the proceeds of the endowment policy. Endowments – The Bad Press

In recent years there have been scandalous reports about endowment policies being mis-sold – thousands of people lost out when their policies failed to produce the lump sum needed to pay off the capital. Insurance companies were forced to pay compensation to some investors who had received bad advice when they took out an endowment policy.

You can also consider selling your endowment in the traded endowments market, which could make you more than surrendering it to the insurance company.

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