Every thought about personal finance I've ever had, as concisely as possible

Re:Every thought about personal finance I've ever had, as co... by OJFord on Friday February 26, 2021 @07:48PM (#26281612)

You can withdraw on margin?! I suppose in a way that's arguably lower risk, but still seems weird. Also think that's quite nation/broker specific, pretty sure that's not an option with T212 or IG in the UK (which provide margin for trading CFDs and the latter limited options too).

Also shouldn't discount overdrafts, pretty sure mine (as in, available to me) is <1.57% equivalent, and 'arranged' I believe they tend to be cheaper or at least much bigger.

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Re:Every thought about personal finance I've ever had, as co... by modeless on Friday February 26, 2021 @07:57PM (#26281667)

Yup. You can buy a house on margin if you like. With Interactive Brokers' rates as low as 0.75% for large balances it doesn't look like a terrible option vs. an adjustable rate mortgage, if your account balance is high enough that you're not risking a margin call.

If the house is an investment, the margin loan interest may even be tax deductible, without the 750k limit that the mortgage interest deduction has.

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Re:Every thought about personal finance I've ever had, as co... by jfk13 on Saturday February 27, 2021 @09:52AM (#26285195)

I'm curious where you can find a 1.57% overdraft rate? Looking at https://moneyfacts.co.uk/news/banking/revealed-the-cost-of-n..., for example, lists (arranged) rates in the range of 15-40%.

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Re:Every thought about personal finance I've ever had, as co... by OJFord on Saturday February 27, 2021 @04:04PM (#26288158)

You may be right, I've never had to use one and didn't actually work out the equivalent rate of my unarranged one.

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