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About Wankan

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  1. In (2) you don't lose an additional £2,700 . £2,700 is all you pay (6500-3800=2700) You pay £6500 in interest to bank a) but receive £3800 from bank . Option 2) only costs you £2700 . Whereas , as you stated , option 3) purchasing outright for cash , costs £3800 because "True in (3) you are no longer getting £3,800 in interest" .
  2. So in (3) tell me how I don't lose £3,800 in interest over the year ?? In (1) I get interest and no house so how in (3) do I get a house without losing income ?
  3. You don't seem to agree that the lost interest income is a cost , a running expense if you will .
  4. That would be a daft idea and would cost money to finance on a monthly basis with no return . In my scenario you already own the £100,000 , you are borrowing to transfer the borrowed cash into a house . Okay I'll run you through my arguement again . Assuming you have £100,000 in savings at 4.75% and assuming you can get a large mortgage at 6.5% and you are a lower rate taxpayer . That'll be most str's then maybe ? Dunno . If you buy a £100,000 house by using your savings it will cost you £3800 a year in net interest lost from your pocket . A cost . If you buy a £100,000 house with a 100% mortgage it will cost you £6500 less the interest you are still receiving on your savings £3800 which = £2700 . So I am saying it will cost you £3800 a year paying cash and £2700 a year with a mortgage . Edit: for bad speeling
  5. I believe Dogbox just said to only put down "10% unless your older than 40. Use the rest to obtain exposure to other assets, whilst you still can. That way you should be in a far more comfortable position come retirement." though I don't know his/her reasoning . I'll have a trawl on google .
  6. Not a troll I'm afraid . Regretably I'm not confused either , but to a degree am enjoying myself . So thank you . I'm just a bit gobsmacked that the concept can't be grasped . So are you me thinks
  7. Well I guess you can take a horse to water , but you can't make him drink .
  8. Ah I see . Thank you for that . If you get time try http://www.natwest.com/tools/general/offse...twest_cs04.html Put in £100000 savings and £100000 mortgage and see how much you save in a standard offset . Then you can apologise . Thank you .
  9. Hi I'm glad to amuse , I'm not "saying" it . "It" just is . Are you saying the very simple maths is incorrect ?? How ? You do lose the investment income if you pay cash . A mortgage less investment income IS smaller than lost interest from paying cash for a lower rate tax payer at the interest rates we can get now .
  10. So I lose £3800 by paying £100,000 cash . OR I lose £6500 less £3800 = £2700 by getting a 100% mortgage . Bargain .
  11. So your saying the investment interest lost by spending £100,000 by buying a house isn't lost income ?????
  12. So you are saying that buying a house outright has no cost apart from the initial cash purchase price ? You don't lose interest income so it should be ignored ???
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