Re: We Are 97% Owned By The Banks : Mon May 14, 2012 4:07 pm  

cod'ead wrote:

But no such thing exists in reality

Yes it does. The intricacies of the deal might mean a bank is still actually charging interest to help facilitate (for example) a sale, but as a consumer or business, 0% finance is often available.

cod'ead wrote:

The final decision is still with the lender, they are the ones who should be bearing the risk

It's a two way deal, with responsibility on both parties. No lender is forced to lend, no borrower forced to borrow.

Re: We Are 97% Owned By The Banks : Mon May 14, 2012 4:11 pm  

Richie wrote:

No lender is forced to lend

True.

Richie wrote:

no borrower forced to borrow.

Not quite so true.

The lender always has had and always will have the last say, it is after all their money they are lending.

Re: We Are 97% Owned By The Banks : Mon May 14, 2012 4:22 pm  

Big Graeme wrote:

Not quite so true.

How so?

Big Graeme wrote:

The lender always has had and always will have the last say, it is after all their money they are lending.

Both parties. Neither can lend/borrow without the agreement and co-operation of the other.

Re: We Are 97% Owned By The Banks : Mon May 14, 2012 4:43 pm  

Big Graeme wrote:

No, as far as I am aware there is no bank that allows you to opt out of paying interest on a mortgage or loan.

Which bank makes you take out a loan, be it secure or unsecured?

Re: We Are 97% Owned By The Banks : Mon May 14, 2012 4:46 pm  

Richie wrote:

Yes it does. The intricacies of the deal might mean a bank is still actually charging interest to help facilitate (for example) a sale, but as a consumer or business, 0% finance is often available.

Any "zero %" or unrealistically low-interest finance deal still has to be financed. I don't know of one single retailer of anything that finances credit arrangements themselves, all are conducted through the usual, bank-backed finance houses. The credit fees are simply financed by utilising a portion of any available manufacturer discount or retailer margin to provide up-front interest to cover the life of the agreement. So, in reality, there is no such thing as 0% finance.

Richie wrote:

It's a two way deal, with responsibility on both parties. No lender is forced to lend, no borrower forced to borrow.

Of course both parties have a responsibility to each other but the final arbiter is always the lender not the borrower.

Re: We Are 97% Owned By The Banks : Mon May 14, 2012 6:29 pm  

Dally wrote:

Which bank makes you take out a loan, be it secure or unsecured?

None of them of course but that isn't what I said.

Re: We Are 97% Owned By The Banks : Mon May 14, 2012 9:04 pm  

cod'ead wrote:

So, in reality, there is no such thing as 0% finance.

In reality, the mechanism behind the finance is irrelevant to the borrower, therefore there is 0% finance

cod'ead wrote:

Of course both parties have a responsibility to each other but the final arbiter is always the lender not the borrower.

Considering that both parties have to agree to the deal, is there any relevance to "final arbiter"?

Re: We Are 97% Owned By The Banks : Mon May 14, 2012 9:10 pm  

Richie wrote:

In reality, the mechanism behind the finance is irrelevant to the borrower, therefore there is 0% finance

Not so. Unless I borrow £100 and only pay back £100, no charges, no overheads, no fees, then there is no such thing as 0% finance.
The percentage doesn't have to be on the monthly payments, even if it's an admin cost, it's still a percentage that can be measured.

Re: We Are 97% Owned By The Banks : Tue May 15, 2012 3:07 am  

A good move here in Aus is forcing banks to show the full effective interest rate on loans including any fees applied. Normally pretty irrelevant on the scale of a mortgage, but often a huge add-on on smaller loans.

Re: We Are 97% Owned By The Banks : Tue May 15, 2012 7:39 am  

BrisbaneRhino wrote:

A good move here in Aus is forcing banks to show the full effective interest rate on loans including any fees applied. Normally pretty irrelevant on the scale of a mortgage, but often a huge add-on on smaller loans.

A bit pointless on small, short term loans though.