Demystifying the world of lending
With a leveraged investment you would be responsible for repaying the loan and interest on it. Adding leverage to your portfolio may amplify returns in a rising market, although losses may also be amplified if the market falls. There may be an extra risk if you borrow in a different currency to the currency of the assets in your portfolio. If you borrow to buy an investment property and fail to keep up with the required payments, the property may be repossessed, or a receiver of rents appointed. Your home may be repossessed if you don’t keep up repayments on your home mortgage.