Standard Life has announced a mortgage endowment promise aimed at reassuring customers who may be concerned about the ability of the company's endowment plan to repay their mortgage.

The basis of the promise is that, provided the company can earn at least 6 per cent (after tax) each year on the assets in which the policy is invested, every endowment policy will meet its targeted value.

The company will be contacting customers over the coming months with details of the guarantee and the conditions that apply. Standard Life has approximately 11,000 mortgage endowment customers in Ireland.

A spokesman for Standard Life said the company was responding to significant concerns about endowment shortfall in the UK market, but that Irish policyholders would benefit in the same way as British policyholders.

Mr Paul Carty, chief executive of the Irish Brokers Association, said this move by Standard Life was an expression of confidence in a comparatively low interest-rate environment.

He said he expected other institutions in Ireland to follow suit.