Hey guys,
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.
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.
Benny
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 !!