Alexius
2021-10-19 17:32:45
- #1
I don't think much of building society combination products. The effective interest rate is usually always higher than comparable annuity loans. In the first 15 years, you only pay the interest – the rest goes into the building savings contract and is virtually not interest-bearing. This means that in the first 15 years, you do not reduce your loan by a single cent, no matter how much you "make special repayments" – it all just ends up in the building savings contract without interest.
For me, it's only a product that is interesting for customers who cannot get a regular annuity loan and for the advisors to fill their pockets – since there are high upfront costs and high commissions.
Presumably, the effective interest rate in your case is 1.6-1.7 percent or more. (I haven't recalculated it)
For me, it's only a product that is interesting for customers who cannot get a regular annuity loan and for the advisors to fill their pockets – since there are high upfront costs and high commissions.
Presumably, the effective interest rate in your case is 1.6-1.7 percent or more. (I haven't recalculated it)