Buyer's Funding of the Purchase (Stage 2)

Question 1

What are the 2 ways a buyer will pay for the property?

Answer 1

Cash

Mortgage

Question 2

What kind of advice can a solicitor give their client about mortgages?

Answer 2

ONLY GENERIC ADVICE (e.g., what the different kind of mortgages are).

If client wants specific advice, must tell them to seek an independent financial advisor.

Question 3

5 Types of Mortgages

Answer 3

1. Repayment Mortgage
   - Borrower repays capital + interest over the term
2. Interest Only Mortgage
   - Borrower only repays interest over the term, capital at the end of the term
3. Endowment Mortgage
   - Mortgage combined with life insurance policy
4. Pension Mortgage
5. Sharia Compliant Mortgage