Quote:
Originally Posted by Peter Mitry
Hi Red I thought this was a Shariah mortgage? Is the HSBC option a fixed percentage throughout the term on the total capital amount? If so the true interest rate is much, much higher.
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Hi Peter.
I'm really not sure on both points. So far very little information has been provided on the Mortgage terms. It's something I will have to look into. I'm not sure if I am going to take up the Finance Option and may just pay up by cash. But then again, as an investor it's always wise to use as little of your own capital as possible.
Once I'm sure of the terms of the mortgage I'll deceide on whether to take the finance option or not.
p.s
With regards to your point regarding the rate, I'm presuming it's going to follow the standard format of Mortgages available in the UK eg. if you purchase a property for 100k and put down a deposit of 40K then 6.9% will be applied on the remaining 60k on an annualised basis for the term of 15 years.
If it's a Shariah mortgage then the terms may differ. Again all of this is yet to be confirmed and I'm only speculating
Kindest Regards
RED