Failure of some great number of endowment policies is going to see around 360,000 families selling their properties. In some cases the expected returns have fallen short to £100,000 of the promised levels.
Several of those who saved loyally for 25 years would get only around £25,000 a lot lesser amount to the capital they owe on their homes.
And with banks and building societies not keen on lending to people who are approaching their retirement, many will be forced to sell their homes or have to take out their savings to clear mortgage debts.
Though the properties have seen a rise in value up by 250 percent, since they were bought, taking any advantage of the equity would mean homeowners would have to leave home and move to different area.
Up to two million may end up in the same situation over the next five years.
Payouts on endowment policies have been falling for years. With some companies, the majority of policies coming to the end of their term this year, it seems good returns on the policies was far below the promised levels,to pay off the home loans.
Insurance companies will see a record number of policies mature this year, a result of the endowment mortgage sales that gripped the late Eighties.
More than six million policies were taken up, bringing in annual premiums of more than £2.3 billion for insurers.
They were sold to homebuyers as a way to pay off their mortgage and provide an extra lump sum if investment returns were good.
Homebuyers paid interest to the lender but none of the capital they had borrowed.
Martin Wheatley, a director of the Financial Services Authority, has raised concerns that up to 1.5 million homeowners in their 50s with interest-only mortgages were on the brink of defaulting on their loans.
Patrick Connolly, from independent advisers AWD Chase de Vere, said that payouts have fallen over the past few years and it was likely to continue with increasing risk of those saving in policies having to sell their home to pay off the home loan.