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The Mortgage Route A to Z
Low start

This glossary or A to Z should help clear up any confusion as to what terms mean what in the mortgage and insurance industry

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Letter L

Low start

A premium structure for a low cost endowment or other investment policy which allows the level of premiums payable to commence at a lower level than would normally be expected and build up over a period of time (normally the first five years).

The ultimate premium attained after the five year point is usually greater than that which would have been on a level basis, but it does give you the benefit of greatly reduced initial costs if you are on a very tight budget.

The total premiums payable under a low-start arrangement will exceed those payable under a normal contribution structure to compensate for the loss of investment growth on the reduced payments in the early years.

FSA declaration and important text about mortgage advice