Just wondering how many investors here use interest rate caps, floors or collars.
C2
Rich in happiness and money is better than rich in money with no happiness.
C2, Can you explain how you might be able to use these for property investment at a retail level?
Cheers
Stu
Hi C2
please explain
I heard that from a wise now old lady who ran a chip shop some were and got on the front page of every news paper should have got her to advertise for me but I digress
eplain each and see if they can or I do already use them.here to help
I was thinking back to 1986 when I had a capped loan on my first PPOR. It was capped at 13.5% when interests rates were heading up towards the 17% mark. As interest rates kept going up my rate stayed the same. As interests rate slowly went down so did my rate but the ceiling cap was still there. Would there be any benefit in capping a loan now at 7%. You can still have the current low variable rate and if the market rates, do start to rise as some of the so called experts are predicting would this not be a good safety net. Would this capping be applicable to an IP loan? I can’t see any reason to apply floors or collars to an investment loan but I’m no finacial expert and I was wondering if any investors could add some light on the subject.
C2
Rich in happiness and money is better than rich in money with no happiness.
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