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kilroy

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Everything posted by kilroy

  1. http://www.thisismoney.co.uk/money/news/article-1708153/Pensioners-keep-mortgages-to-avoid-IHT.html add in SMI and KERCHING; state-sponsored tax avoidance! Or so my mates freinds best man at my 3rd cousins wedding last summer said over a glass of Pimms...
  2. You are quite right. How silly of me to think that MEWing your equity and giving it to your kid to avoid IHT would ever work.
  3. That's exactly what they should do, with kids paying interest in cash. Of course loan docs should be drawn up to protect the parents in case their progeny dies first etc. In fact, I believe it is one of the reasons that many pensioners still have outstanding mortgages.
  4. If crisps were £10 a bag, Being able to afford said crisps wouldn't stop me going to www.crisppricecrash.co.uk....
  5. Agent's don't necessarily set the price, but certainly set expectations on the high side when out-valuing each other to get the property on their books in the first place.
  6. Sorry, but I thought labour were in power for 13 of the past 14 years......
  7. Everybody has been classified as low income. Did you not get the memo? 18k take home is about 23k per year gross. I have noticed recently that there appears to be some lefty media agenda to braInwash the general public into believing that everyone is low paid.
  8. I don't think you are correct; most of these type of employers run graduate schemes which you only apply to once.
  9. So they can't afford to drive to the house, but they can afford to buy it? Riiiight.....
  10. "What happens at the end of the term of my Partnership Mortgage? A year before the end of your Partnership Mortgage term, we will contact you to arrange for a valuation of your home. At the end of the term, you will need to repay your Partnership Mortgage from your savings, by remortgaging your home or, if you are unable to do either of these, by selling your home. " SO there is a term to these things. IF you do not save at a rate greater than HPI, you will have to sell to repay the mortgage.
  11. "Why is Castle Trust willing to lend me money for up to 25 years with no monthly payments AND share in any loss I may suffer? Castle Trust does not take deposits to fund the Partnership Mortgages in the way a bank or building society does. Instead, Castle Trust funds Partnership Mortgages via House price Savings Accounts ("HouSAs") and long term institutional funding. HouSA investors receive returns based on the Halifax House Price Index. Institutional fund investors receive returns based on the actual returns of our Partnership Mortgages. " http://www.castletrust.co.uk/mortgages--2/faqs#q3
  12. Some funds will come from J.C. FLowers intitially, then from wholesale markets and then from depositors as they buy the housas. The deposit of 100 will earn say 5% p.a. but it may only cost 4% to get 1.5x leverage to Halifax. As a result, your deposit of 100 will earn 1% per annum (5% less cost of halifax swap) AND you will get halifax index performance at maturity. Model is not that different from a deposit-taking mortgage-lending bank, except the "deposit" here is house price linked, as opposed to purely earning interest income. The bank here however, is taking the mismatch risk between deposit maturity and when the morgage slice is repaid.
  13. I'll digest this tonight. Quite interesting from a btl perspective potentially on a first blush. Effectively most people btl ing now are receiving very little in yield, which means the only gain you will get is price appreciation. one of the products offered is the growth housa which pays you no income, just price appreciation at the end of the term. If they offer this at 2x Halifax index, it is the equivalent of a btl with 50% deposit, without the risk of tenant non payment, fees, upkeep etc. They also claim it is sippable, I can see a lot people going for this. On the other side, buyer already has to have 20% deposit so won't affect the FTb Market much. That's my first blush, but will look in detail later
  14. Let's roll it back to a simple fixed rate deposit. The investor deposits 100 for 5 yeas and receives x% per year fixed. In reality what will happen is that the bank will put your 100 on short term deposit earning libor. This libor amount is then swapped for the fixed x%, so you effectively pay libor and receive x% each year. With these Halifax swaps you would pay libor and receive y% at maturity, where y is linked to the Halifax index. The pricing of the swap at 1.5x change in Halifax indicate to me that the true value Of this swap against libor is prob around 2x. So what they say is you swap 75% of libor for 1.5x Halifax index and keep the 25% libor as your "interest". Before maturity receive this small inteest amount and at maturity you receive back your 100 +\- 1.5x Halifax index. So not necessarily a ponzi scheme but investors are exposed to leveraged losses/gains on the Halifax house price index
  15. Probably a libor vs Halifax swap. Fwd libor curve is upward sloping and quite steep, halifax fwd curve probably fairly flat so there may be enough juice on the libor side to get 1.5x leverage and keep a bit of libor. Just a guess but that is he only way I can see an income can be paid and have exposure to Halifax index. If you google HouSAs then the ft article I read earlier should come up
  16. The funding will come from retail deposits, where they offer 1.5x the performance of the Halifax index Plus some quarterly interest (they are calling them HouSAs) As I stated earlier, it is zopa meets shared appreciation mortgages.......
  17. Zopa meets shared appreciation mortgages (SAMS). First time buyers would have to remain in that home as when they sell they will be unlikely to bridge the "rungs" after paying off the mortgage......
  18. His points were A ) it's unpalatable but employers have told him they would generally choose a non-disabled worker over a disabled worker B ) people have the choice to work for free on internships etc, why should they not have the choice to work for £5.50
  19. I originally thought it was a p1sstake.....
  20. These aren't marriott hotels, they are Marriott branded; probably some franchise type deal.....
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