With the property market picking up, many people are looking into new investment opportunities.  Because they anticipate that the investment will yield them attractive returns, they do not hesitate taking up mortgage loans from the financial institutions.  This is all fine when times are good and they are able to service their loans dutifully.

However, problems arises when interest rate goes up or the market softening, resulting in a poorer than expected return on their investment.  They could find themselves in trouble because they are unable to service their mortgage loans. 

One good way to protect property investors from this problem is the availability of mortgage protection, which ensures that their loans can still be serviced even when they are financially burdened.

However, I’ll say that a good way to start is that financial institutions could do better by being more stringent in their approval process, especially ensuring their customers do not have poor credit remortgage in the first place.  

And having said that, it should also be noted that everyone needs to borrow within their means.