Bradford And Bingley 50/50 Property Bond

[devslim]

I received this from Bradford and Bingley in my mailbox today

Dear Mr Harris,

Are you hoping to cash in on the rise in house prices and want the security of a guaranteed return of capital? If so our new 50/50 Property Bond could be right up your street, with a fantastic savings rate plus a guaranteed capital return, coupled with the potential to gain from any rise in the Halifax House Price Index (HHPI)

Watch your savings build and build...

- A one year fixed term bond, paying a fixed 7.00% pa gross / AER* on half your investment and;

- A five year House Price Bond, paying 110% of any gain in the Halifax House Price Index on the rest

Key Features

- Capital Security – whatever you invest you get back guaranteed

- Minimum opening balance £1,000 (£500 per element) Maximum £250,000 (£125,000 per element)

- Easy to open deposit savings account

- No additions or withdrawals permitted during the term of either element

Act today – this is a strictly limited offer

This opportunity is available for a limited period only so act now to make sure you don’t miss out. The closing date for new applications is 4th September 2006.

http://www.bradford-bingley.co.uk/savingsa...yBondissue1.asp

So is this a good investment or is it a cynical attempt to cash in on the sheeples belief that property prices only go up?

Edited August 15, 2006 by devslim

[IamSpartacus]

I received this from Bradford and Bingley in my mailbox today

http://www.bradford-bingley.co.uk/savingsa...yBondissue1.asp

So is this a good investment or is it a cynical attempt to cash in on the sheeples belief that property prices only go up?

Any sales pitch that stresses it is a limited offer and you must act now (because obviously there'll be no houses in a months time... ) is clearly designed to manipulate greed. I'd steer well clear...

[KingCash]

I too saw this offer in one of their branches and immediately thought "they think house prices are going to go down don't they!"

[IamSpartacus]

I too saw this offer in one of their branches and immediately thought "they think house prices are going to go down don't they!"

It would be a good hedge for them as a building society - as the mortgage portfolio starts to suffer they at least have to pay out less to savers because they've hooked their returns directly up to the property market...

[backtoparents]

If they're offering something like this to the general public.....

..... I'd say this is a good sign of where they are worried the market is going.

btp