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3. USE OF MORTGAGE PRODUCTS

3.1 Which Type of Mortgage?

  • Some basic questions need to be asked:-


    1. What is the client's viewpoint, and has good or poor past experience formed such an opinion. Is the preferred choice suitable?
    2. Can the client afford the preferred choice? Will an increase in the interest rate make payment difficult?
    3. Is the preferred choice flexible enough to cope with changes in the borrower's situation i.e. could the term be extended or payments reduced?
    4. How often is the borrower likely to move house? Would they want to maintain the same term, or would they accept taking on a new, perhaps extended, term of repayment

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