Mr GL;188676 wrote:So further to the above - I have been offered the following from a high street bank via Private Finance broker...
Borrow £210,999 (including Bank's fee of 999)
Rate 0.94 fixed for 5yrs (30th Nov 2026)
Repayment over 19 years
Early repayment charges apply
Conveyancing and Valuation paid for by Bank
add in the fees to the broker and this is an effective borrowing / cost of money rate of 1.13% over the 5 years...
Valuation is being done next week and then should be good to go... our problem was that I have no predictable salary so we ended up getting the loan based off wife's income and the income we get from investments with some acknowledgement of the value and income profile of our SIPPs. They never asked to see the valuations of the ISAs or kids bare trusts etc..
Ended up not needing the asset based lender - they would have lent us more but the rate and the fees were less appealing as I was fixated on getting close to 1% and this is more than enough for our building project needs and with money left over to make full ISA contributions + other investments etc...
Also with UK inflation recently 3.2% and expected to increase my NS&I inflation linked notes (of which we have a decent chunk) are 'earning' more (and they are tax free too) than the cost of the mortgage... bonkers...
This finally settled at the end of the day yesterday... HSBC... and now starting the process of transferring the funds to our ISAs and general dealing accounts...
Plan is to use it in a very diversified yield / income portfolio (I have started a thread to this effect) - hopefully dont lose a chunk of capital in my search for excess yield... 5%+ should be achievable... and so should hopefully be a nice little earner but not worth getting too overexcited about as will have to pay it back eventually...