Depositors funding mortgages for better return?

Hi all

Given the way banks are hitting both borrowers and depositors
has anyone come accross a set up where both can come together
to cut out a portion of the banks return.

Eg

In my situation I owe €90k on an investment mortgage at 4.95%
LTV 60%.

Given that deposit rates in most cases are 2% or lower
I believe it makes sense for people to come together for both to get
a better return on their investment?

Any views welcome.

Thats an excellent point.

The banks are currently restricted by their own cost of funding and their need to fund their legacy loss-making tracker mortgage book, meaning that the interest rate margin is widening all the time. We saw the best example of that recently when the banks were raising their variable rate on the same day that the ECB announced an interest rate decrease. The variable rate mortgage holders are subsidising the loss making trackers, plain and simple.

I think there is a great opportunity for a strong European bank to come in and to offer reasonable mortgage rates to "positive equity" variable mortgage holders.

I think its only a matter of when, not IF.

It's a very excellent point! I'd more than happily put up 90K at 3.95% for low LTV loans, and also pay a couple of tenths of a percent to some middleman who would broker the arrangement. And if it was income taxed, all the better -- for me that would be considerably cheaper than the present DIRT level. Pity it probably can't be done legally, or with some middle broker to spread the risk across loans.

Hi pjd

I did a Key Post on this some time ago

The mortgage system in Denmark