Topic 12 - Suitability Flashcards
1
Q
Why considering risk is important ?
A
- risk to the home
- Negative equity
- repayment risk
- interest rate risk
- fixed rate risk
- rate rises at the end
- underperformance of investment vehicle
2
Q
Unacceptable repayment strategies
A
- Using the mortgaged property as means to sell to repay the mortgage
- Using an uncertain inheritance to repay
- Selling the main property you live in to pay unless its enough to pay and buy a new property
