MORE than 40,000 homeowners in East Lancashire with endowment mortgages have taken no action to ensure they can pay for their homes when their policies mature.
According to the Financial Services Authority, almost a half of endowment policies sold over the past 20 years will not pay out enough to cover the mortgage loan.
Nationally, more than 10 million letters have gone out to householders to inform them of the likely value of their policies.
Latest figures show that 45 per cent of the letters warn that a shortfall is possible or likely.
The Financial Services Authority is concerned that home owners are taking no action, even when they have been informed that endowment policies will not meet the cost of their loans.
Christine Farnish, director of consumer relations, said: "Making sure you can repay your mortgage loan is one of the most basic financial needs.
"If there is a risk that you won't be able to, and you are not comfortable with that, then now is the time to decide on what to do.
"If you need to put more money aside to pay off your mortgage, it is a lot less painful to do it sooner rather than later."
To help homeowners, the FSA has produced a factsheet which gives useful tips on all the options for people with endowment mortgages.
Copies are available from the FSA Consumer Helpline on 0845 606 1234 or you can visit their website.
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