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Property Advert With Decent Financial Caveat!


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I bumped into this advert from Miller Homes and RightMove:

Buy Part Advert

You buy a Miller home costing £150,000. You raise a first mortgage for £112,500 (75%) from your bank or building society. We lend you the remaining £37,500 (25%) for up to ten years through . You repay 25% of the value of your home when you sell or transfer it.

If you decide to sell the property:-

After 8 years and the value of your home has increased to £160,000, the amount due under your loan would be £40,000; or

After 2 years and the value of your home has fallen to £140,000, the amount due under your loan would be £35,000 (remember house prices can go up or down).

So Miller Homes will take a hit of 25% of the drop in value. It's a good idea, but not nearly enough to make me even begin to believe that they might not be overrpricing the properties. If they would reduce the amount owing by the full value of the losses then I'd be a little more trusting.

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I bumped into this advert from Miller Homes and RightMove:

Buy Part Advert

So Miller Homes will take a hit of 25% of the drop in value. It's a good idea, but not nearly enough to make me even begin to believe that they might not be overrpricing the properties. If they would reduce the amount owing by the full value of the losses then I'd be a little more trusting.

Maybe it's a little step on the road to honesty. Honesty after the present crash could well be a future seller's USP.

Edited by 1929crash
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Is this 'loan' interest free?

Yes. "0% typical APR".

I'm sure that they are expecting to bag a few of these houses (or portions of the proceeds) when the 10 years are up and the "owners" still don't have the money to pay them back. I wonder what the APR will be then?

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Miller Homes

10 years ago Millers were the biggest private construction group in Britain.

I worked for them in the eighties when the interest rate went through the roof.

Actually as a company they were pretty decent to their staff, keeping them employed for far longer than non private construction companies.

I dont know much about them now though.

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I've posted elsewhere that I fell for a very similar "offer" back in the 1990's hpc.

Don't do it!

What you are taking on is a debt that you know must be repaid at some point in the future - regardless of what your situation is at that point.

It will hang over you like a Sword of Damocles! At least with a mortgage you know that you are paying it off.

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