How to Make £3000 using your equity over 2 years

safc53

Will this work

if I borrow at a fix rate of 2.99% over 2 years ( First Direct ) on 75% of equity of my house ( No margauge and valued at £230000 ) = max loan of £ 172500

Then reinvest the loan in a fixed rate bond with a rate of 4.25% over the 2 year fixed rat period

I calulate over the 2 years I would make £3000 ,if i invest in my wife's name ,who is a non tax payer

_Andy_

You're assuming FD will be happy to lend for the purpose of investing - have you checked this with them?

bristol_pilot

It will work if you trust your wife. The capital and interest would belong to her, not you, but the debt is yours.

Cook_County

I'd love to see the spreadsheet including costs of taking out and paying out the loan, the interest received being capitalised annually while the debt is being repaid monthly...Is this a repayment mortgage or will it need insurance?

I like stoozing, but secured debt for this purpose is plain loony in my world...

Kavanne

do you have enough income for FD to be happy you can repay the loan?

Jemma-T

How to Make £3000 using your equity over 2 years

Sounds like a TV programme on Channel 5. No wonder we're all paying for the banks' decisions.

CLAPTON

looks good to me; you have been conservative on the 3k gain and see to have include the various fees although the redemption fee doesn't seem to appear on their website.