melba Posted July 21, 2011 Share Posted July 21, 2011 I've been looking at new builds. (I'm lazy, don't want the maintenance). One developer is currently offering a 15% loan interest free for 10 years. I had a nosey on the plc website, presuming if they weren't lending out money they could pay off their debt. Sooooo, if they have debts of @ £500M and are paying £100M interest per annum they are paying down 20% interest. Thus, if I were to buy a £200K house and take them up on an offer to borrow 15% (30K) this would cost them 6K a year interest (as they can't pay down their own debts) thus over 10 years 60K?? Why don't they just offer the house for 140K or would that open a can of worms? Quote Link to comment Share on other sites More sharing options...
XswampyX Posted July 21, 2011 Share Posted July 21, 2011 Quote Link to comment Share on other sites More sharing options...
rw42 Posted July 21, 2011 Share Posted July 21, 2011 I would hazard a bet that it's similar to any interest free offer. They hope you leave it 10 years, forget about it, and then start charging you a punitive interest rate. If i remember right some of them would calculate interest from the start of the loan if you had any outstanding after the interest free period when i worked in an electronics store.. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.