What is (GEM)?

GEM stands for growing equity mortgage. This mortgage is different from the other ones out there because in start the borrower has to pay less interest but over time this increases. In common sense every year the interest rate is increased by a fixed amount. The good side of this loan is that the borrower can pay of his mortgage faster then the usual ones in use. The downfall is that the interest increase doesn’t take in consideration the income of the borrower and it will still increase gradually even if the salary has fallen, or is less then the time when the mortgage was taken out.