Tricking the banks

fewcloudy

As you say, you are not desperate and only here out of curiosity and forward planning. However, you also said;


"As I may get a mortgage in a few years (50% deposit from me, at least) I was just wondering if this money loop would improve anything for me in terms of having money regularly going in to 4 different banks/mortgage providers - giving me a good account history with 4 alternative lenders)."


I'm not an broker, but I think this money loop you talk of would not help you at all re. a mortgage. More likely it would look as though there was some type of money laundering going on, or some shenanigans anyway, as it certainly wouldn't look like "normal" banking behaviour would it?


fc

minimike2

amnblog wrote: »

They only have to offer the 'headline rate' to one borrower for the rate to be legally advertised.

Welcome to the 21st Century where Carlsberg is 'probably' the Best lager in the World.

As someone working in finance I am not sure how you have got that so horribly wrong.


OP. Your status as self-employed will have a lot to do with it. Regardless of your level of income you will always be seen as more risky than someone who is employed. Let's say you were sick - you are statistically more likely to be financially impacted by it since you work for yourself, so no sick pay. Chances are your business could suffer as a result.

Someone who is employed may get sick pay etc. These are just little examples and I am not an actuary so don't know the full in's and out's but the self-employed are seen as more risky when it comes to unsecured lending.

Thrugelmir

BS1991 wrote: »

Is this a waste of time or would it actually help me to unlock better mortgage/loan rates?

The more fog you create the less likely you are likely to achieve your goals. Use one primary bank current account / business account and build a long term relationship. Really it is that simple. Transparency is all that's required.

Johnnytwostep

a wonderful trick, worthy of Houdini...............well maybe Paul Daniels

amnblog

minimike2 wrote: »

As someone working in finance I am not sure how you have got that so horribly wrong.


OP. Your status as self-employed will have a lot to do with it. Regardless of your level of income you will always be seen as more risky than someone who is employed. Let's say you were sick - you are statistically more likely to be financially impacted by it since you work for yourself, so no sick pay. Chances are your business could suffer as a result.

Someone who is employed may get sick pay etc. These are just little examples and I am not an actuary so don't know the full in's and out's but the self-employed are seen as more risky when it comes to unsecured lending.

A figure of speech. The point I was making is that you only have to meet the broad rules to advertise something on terms rarely provided.

BS1991

Johnnytwostep wrote: »

a wonderful trick, worthy of Houdini...............well maybe Paul Daniels

I'm not sure what you mean by that because Paul Daniels is a well respected sorcerer where I come from.

BS1991

Thrugelmir wrote: »

The more fog you create the less likely you are likely to achieve your goals. Use one primary bank current account / business account and build a long term relationship. Really it is that simple. Transparency is all that's required.

The point I am making is that if I did indeed use genuinely one back account and pay all my money in to it, it would still come out to be spent/invested outside of the bank. This is not unusual behaviour.

So what is the difference between that and my proposal?

If the banks are interested in how much someone pays in each year, surely my proposal is valid.

And without sounding rude, what are your sources? Do you work in the lending game, for example? Or are you just giving me an un-informed opinion?

Johnnytwostep

BS1991 wrote: »

I'm not sure what you mean by that because Paul Daniels is a well respected sorcerer where I come from.

probably says more about where you come from than anything else. Must be an area well known for its stunning 'tricks'

Thrugelmir

BS1991 wrote: »

And without sounding rude, what are your sources? Do you work in the lending game, for example? Or are you just giving me an un-informed opinion?

I'm just an innocent passer by and just gave you an alternative perspective. Up to you to formulate what works best for you. Personally at a business level I build working relationships foremost. Takes time and not without frustrations.

gunsandbanjos

Cash cycling is viewed dimly by banks.