loan from banks for shares

[barryl]

i am considering buying a portfolio or irish shares in the near future.i dont wish to use my own savings .will the banks lend for shares or top up a mortgage? or what is the best way to fund it? thanks barryl

 

[Diziet]

The best way to fund it is using your own money, not the bank's. Who probably would not lend you money for share purchases in a million ears in this climate.

 

[papervalue]

I do not knew the answer but if you were going to buy shares in one of the main banks and asked for a loan- Look bad for them to refuse loan if you were going buying that bank shares- catch 22 for them, if refuse loan , they have no confidence in their own bank value.

 

[Slim]

i am considering buying a portfolio or irish shares in the near future.i dont wish to use my own savings .will the banks lend for shares or top up a mortgage? or what is the best way to fund it? thanks barryl

If they believe that you can repay the loan, they may well lend you the money. However, I think there is a problem with overtly lending to an individual for the purpose of buying the banks's own shares! Open to correction on this.

Slim

 

[webtax]

i am considering buying a portfolio or irish shares in the near future.i dont wish to use my own savings .will the banks lend for shares or top up a mortgage?

If you borrow to invest, then presumably you will be paying a higher interest rate on the loan than you will be getting on your current savings.

 

[Brendan Burgess]

The bank should top up your mortgage if you have the ability to repay it. They will ask you the purpose of the loan, but they will be less concerned about it.

They won't take shares as security.

There is no problem in borrowing from the bank to buy bank shares, unless you are buying around 5% of the bank's equity.

As webtax pointed out, you should not have borrowings while you have savings which receive a lower rate of interest.

Brendan

 

[barryl]

Brendan,when you say that theres no problem taking out a loan to buy shares do you mean that a bank will give you say a five year loan to buy shares(like a car loan) barryl

 

[Towger]

Brendan,when you say that theres no problem taking out a loan to buy shares do you mean that a bank will give you say a five year loan to buy shares(like a car loan) barryl

Sure what do you think Sean Quinn did, Anglo lent him the money, he purchased their shares with it. It was only when his hand went into the insurance fund money jar that he got a slap.