The Masked Tulip Posted August 30, 2011 Report Share Posted August 30, 2011 I keep catching the end of an item on Sky News that they have been playing throughout the day. I think it is something about derivatives and credit swaps but I only take notice right at the end when I hear a strong Welsh accent with a bloke talking to camera in what looks like part of Cardiff Bay. I only catch him mentioning something about getting a demand from the banks for 90,000 for a property or properties that he has purchased. Has anyone else seen this - if so, what is it about? It sounds like something to do with BTLs possibly? Quote Link to post Share on other sites
Democorruptcy Posted August 30, 2011 Report Share Posted August 30, 2011 It's about people taking insurance out against interest rates rising but not realising they had to pay a fee if rates fell - like they have. The Welsh bloke has a recorded call where his bank advisor told him if rates fell he would only have to pay £1,500 to £2,000 but he has been hit with a £95,000 charge Quote Link to post Share on other sites
Democorruptcy Posted August 30, 2011 Report Share Posted August 30, 2011 http://news.sky.com/home/business/article/16058908 Quote Link to post Share on other sites
The Masked Tulip Posted August 30, 2011 Author Report Share Posted August 30, 2011 It's about people taking insurance out against interest rates rising but not realising they had to pay a fee if rates fell - like they have. The Welsh bloke has a recorded call where his bank advisor told him if rates fell he would only have to pay £1,500 to £2,000 but he has been hit with a £95,000 charge Feck! That is an OUCH! Thanks. Prsuambly you only take out insurance against IRs rising if you have big loans such as a property portfolio? Quote Link to post Share on other sites
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