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House Price Crash Forum

New Development Incentives

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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?

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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..

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  • 429 Brexit, House prices and Summer 2020

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      • down 5% +
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