- JustinmGParticipant@justinmgJoin Date: 2020Post Count: 0
please Feel free to correct me if I’m not making sense.
While listening to a podcast today I came across a lending product called a “portfolio package” from the private/business division of the bank.
Would using this portfolio/investors package from the bank be cross collateralising the assets? Which I’ve been told is a big no.
jTerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
Cross Collateralising refers to using 2 or more properties as security for 1 loan.
Portfolio packages don’t necessarily involve crossing security but it will depend on how it is set up.
There is one well known ‘promoter’ that encourages the use of the St G Portfolio product which is just a big LOC
They way they suggest is terrible and involves crossing securities.BennyModerator@bennyJoin Date: 2002Post Count: 1,416
It would really depend on whose “portfolio package” it is, and just what it entails. A bunch of years back, I took a portfolio package with one of the big 4, and found out afterward (my dd was shameful !!) that it was charging me a higher rate than Standard Variable so I unwound a lot of it. It had other benefits, but the over-high Interest Rate initially left a bad taste in my mouth for many years.
Check first before signing up !!! Don’t be dazzled by all the “key phrases” they say that make things sound Mickey Mouse – do your DD on them.
PS Edited later>>>> And I recall that cross-collateralisation was also their “default” position (it is better for the bank, but not so good for you). We had to re-affirm that we wanted NO cross-colls at all. They listened, but if we hadn’t insisted, it might have been different, so watch out.
- This reply was modified 2 weeks, 3 days ago by Benny. Reason: Additional comment re cross-coll !!