This is not legal advise, just obvious things, but still worth mentioning.
Always check terms for:
- what methods the lender can use to calculate an increase in interest rate.
- when the lender can exercise the right to increase.
- how and when the lender is required to serve notice of those increases and when are you deemed to have 'received' notice.
- penalty provisions for defaulting.
- rights reserved for you and the lender to terminate the loan agreement.
- consequences of termination.
I guess basically just plan for the worst case scenario and consider if you could absorb the cost of default/termination.
Missed opportunity to say Dr. Donkin dunked on Churchill