Solicitors Mortgages

Solicitors mortgages are a special type of loan usually offered by solicitors to investors. They are usually interest-only schemes wherein the borrower pays only the interest on the principal for part of the term, and pays a big lump sum at the end of the period. Solicitors mortgages are controversial in Australia because they are open to fraud and deceptive schemes. It is said that solicitors mortgages bring in around $20 million annually from unwilling investors. The Australian Securities and Investments Commission (ASIC) has launched a drive to require full transparency in all solicitors mortgages to prevent fraud.