Investment Mortgage

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Investment Mortgage means a mortgage that is taken by the borrower in order to buy an item or asset which he does in the hope that it will bring in profits for him. A Mortgage Investment is taken by the borrower to buy goods that will not be consumed today but will be used later in order to create wealth.

Investment Mortgage has increased all over the world in the last few years. The Mortgage Investment are used to buy holiday homes that have rental potential and to buy apartments or homes for children that are staying away from house while keeping in mind the potential to resale or rent the house. Investment Mortgage is also used to buy residential property that has potential to increase in value or can be used to earn rent. The main objective of the borrower who goes for Mortgage Investment is to generate wealth for himself by investing in property and then selling it at a higher price.

The lenders of Investment Mortgage offer up to 85% of the total value of the property. This helps the borrowers for even when they do not have money in their accounts they can buy property by taking Mortgage Investment. The people who go for Investment Mortgage are those borrowers who invest in property in order to make profit for themselves. Nowadays, many banks and building societies are offering Mortgage Investment.

The advantages of Investment Mortgage is that the borrower is able to buy many properties for he gets loans easily and thus is able to make huge amounts of profit by selling them off at a higher price. The disadvantages of Investment Mortgage are that the borrower has to pay a very high rate of interest and this puts added pressure on him. Many times, the prices of property falls as a result of which, the borrower is unable to repay the Investment Mortgage that he has taken and thus defaults.

The various kinds of Investment Mortgage are:

  • Fixed rate Investment Mortgage
  • Discount rate Investment Mortgage
  • Flexible rate Investment Mortgage
Investment Mortgage has become very popular in the last few years for the people have realized that by investing in property and then selling it, they can make huge amounts of profits. Thus, the various banks and building societies that offer Mortgage Investment must launch new schemes in order to attract the customers.

Last Updated on 5/26/2011