ukinvestor
Member of DD Central
Posts: 116
Likes: 34
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Post by ukinvestor on Sept 19, 2022 8:39:34 GMT
T* Petr* S* and W* Petr* S* still got over a year left to run, but are already listed for refinance.
Are the borrowers trying to lock in lower interest rates before rates go up?
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Post by uksoul on Sept 19, 2022 11:22:57 GMT
T* Petr* S* and W* Petr* S* still got over a year left to run, but are already listed for refinance. Are the borrowers trying to lock in lower interest rates before rates go up? I would say locking in a lower rate early is a key reason for the refinance. Borrower is the same for both loans so significant savings can be made. Loan request states the refinance will also provide funds to purchase another investment property.
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Post by Ace on Sept 19, 2022 11:47:20 GMT
The reason would appear to be the desire to raise extra funds. I've only looked at the T****n loan as I'm not in the other one, but the average interest across the two tranches would be slightly higher for the new loan (7.37% instead of 7.31%). There would also be a 1% early repayment fee if repaid before the end of December.
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Post by overthehill on Sept 19, 2022 12:20:45 GMT
The reason would appear to be the desire to raise extra funds. I've only looked at the T****n loan as I'm not in the other one, but the average interest across the two tranches would be slightly higher for the new loan (7.37% instead of 7.31%). There would also be a 1% early repayment fee if repaid before the end of December.
Not enough detail yet but there is another petrol station loan in pending, could be the same borrower. I'm undecided at the moment, might drop down to 1 loan rather than go up to 3.
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