Affordability mortgage

A mortgage loan where the borrower's repayments are initially set at a low rate, resetting to a higher rate once the introductory period is over.

The initial rate may be either a variable or a fixed rate.

Also known as a 'low start' mortgage.

See also

• CMBS
• First mortgage debenture
• Fixed charge
• Liquidity risk
• LTV
• Mortgage
• Pipeline risk
• Refinancing risk
• Security
• SVR