IHT – Death Estate Calculation

Following is a part of question from ACCA Technical Artical (IHT – Part 2)

My question is – if the holiday cottage had an outstanding Endowment Mortgage why was it included in calculation of death estate? As it says in the previous explanation that only repayment mortgages and interest mortgages are to be included?

(I have copied the whole part of Death Estate calculation for reference)

Question:
At the date of her death Jing owned the following assets:
• A holiday cottage valued at £220,000. This had an outstanding
endowment mortgage of £60,000.
• Units in the Global Trust, a unit trust, valued at £12,000.
• Cash deposits in individual savings accounts of £16,800.
• A motor car valued at £8,000.

• A life assurance policy on her own life. On 21 January 2013 the policy
had an open market value of £45,000, and proceeds of £50,000 were
received following Jing’s death.
On 21 January 2013 Jing owed £3,600 in respect of a personal loan from a
bank, and had gambling debts of £600. The cost of her funeral amounted to
£3,200.
Under the terms of her will Jing left £100,000 to her husband, a specific legacy
of £40,000 to her brother, and the residue of the estate to her children.

Answer:

Death estate
£ £
Property 220,000
Units in Global Trust 12,000
Individual savings accounts 16,800
Motor car 8,000
Proceeds of life assurance policy 50,000
306,800
Bank loan 3,600
Funeral expenses 3,200
(6,800)
Value of estate 300,000
Spouse exemption (100,000)
Chargeable estate 200,000
IHT liability 200,000 at 40% 80,000
• The due date for the IHT liability of £80,000 payable by the personal
representatives of Jing’s estate is 31 July 2013.
• Jing’s husband will inherit £100,000, her brother will inherit £40,000,
and the children will inherit the residue of £80,000 (300,000 – 100,000
– 40,000 – 80,000).