Reply to: Bitcoin

[AtW]

And they can (likely be obligated to) file SAR report when they hear “I am a crypto millionaire, stick your shiity mortgage up your arse, I will pay cash (FIAT $100 bills), with non consecutive serial numbers.”

[pr1]

No one ever asks where the money comes from - cash in crypto. Put it in a bank account, then just say your capital is in the bank and show them a statement.

They do ask where it comes from as per The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017

https://www.legislation.gov.uk/uksi/.../contents/made

e.g.
What the Solicitors will do

If you are selling a property, they will check the Land Registry for details of who is registered as the owner. If you are buying, they will ask for 6 months of bank statements and will query if the source of funds for the deposit is not clear.

If someone else has given you your deposit funds (e.g. a parent or other family member gifting the deposit) this does mean asking for more information, such as evidence of the third party’s identity. The process might seem intrusive, but your solicitor will have to track where the money came from originally.

In addition to these initial checks, they also must monitor transactions as they progress and report any suspicious activity.

[AtW]

Inflation has taken off

[DealorNoDeal]

If inflation takes off, which certainly seems to be a growing concern in the US, then the normal central bank response would be to raise interest rates.

Two problems with that though. 1) it would probably sink the economy and 2) the interest payments on all the Government debt could be a bit of a problem.

We could be in for interesting times...

[GigiBronz]

Let's pretend this is an interview question .... you're on a 25 year mortgage, you're been paying for 5 years. Do you think any capital has been paid off the mortgage (assuming it's a repayment mortgage and not interest only)

As for the LTV, that's part 2 of the question

for 25y term, after 5y, you seem to amortise about 15.5% of the principal with 2.5% interest rate and only about 11.5% with 5% interest rate and for values in-between probably we could interpolate between the values. hopefully I got the figures right.
https://en.wikipedia.org/wiki/Mortgage_calculator - fixed rate mortgage

not quite sure now if the bank has to "mark to market" at re-financing, or just go with an arbitrary figure...

then you have to account for:
- repairs, conservative estimate would be 0.5% of property value / year.
- transaction fees
- fire insurance and all those things that you only have to buy if homeowner.
- the cost of opportunity for the deposit
- the cost of having the money tied up in an asset that takes time to sell.
- the risk of your financial circumstances changing in 5 years and inability to remortgage at fair rates. landing on variable etc that would make monthly payments very difficult to digest for most
- the risk of having to sell earlier because you either have to relocate or wfh has turned into 3 days onsite and the client is 100mi away.


initially it was meant as slightly rhetorical question as the likelihood of a correction could be higher than expected. we've had a long period of happy go lucky but anyone sane asks themselves the same question: how long can they go? or how long can they keep it low?

[Whorty]

If the rates go up in the future it will be even a juicier payout for them. Maybe just in time for the next re-mortgage for the people that went in with 95% LTV during current frenzy.

https://www.bloomberg.com/news/artic...premium-europe

If you make the regular payments during a 5y period let's say, you got in with 95% LTV and house prices drop 10% are you still at 95% LTV or do you manage to pay at least a few percentages of the principal?

Let's pretend this is an interview question .... you're on a 25 year mortgage, you're been paying for 5 years. Do you think any capital has been paid off the mortgage (assuming it's a repayment mortgage and not interest only)

As for the LTV, that's part 2 of the question

[Whorty]

"What a fascinating story, Sir, now please provide full documentary evidence to all of the above, certified by Linklaters"

No one ever asks where the money comes from - cash in crypto. Put it in a bank account, then just say your capital is in the bank and show them a statement.

[GigiBronz]

Because you'd be paying off mortgage of a mug who earned his money legitimately?

What a shocker that banks don't want to accept ransoms paid by the Irish and Americans - they'd much rather keep money loaned against £1 mln house and collect monthly payments, thankyouverymuch.

If the rates go up in the future it will be even a juicier payout for them. Maybe just in time for the next re-mortgage for the people that went in with 95% LTV during current frenzy.

https://www.bloomberg.com/news/artic...premium-europe

If you make the regular payments during a 5y period let's say, you got in with 95% LTV and house prices drop 10% are you still at 95% LTV or do you manage to pay at least a few percentages of the principal?

[Jarman]

Or

I am a crypto millionaire, stick your shiity mortgage up your arse, I will pay cash (FIAT $100 bills), with non consecutive serial numbers.

[AtW]

You take all this crypto crap far too seriously.

I sure do

[_V_]

Yeah, great plan - now find a lawyer who'd risk their firm for a couple of grand they make from that transaction: it seems that liability for anything related to money laundering will fall upon them.

Basically the simple truth is that 95% of your "fiat" is now also tainted - have a nice poor life when nobody wants to take your money.

P.S. Their non consecutive serial numbers were accurately associated with you and stored by bank for the next 20 years

You take all this crypto crap far too seriously.

[AtW]

Or I am a crypto millionaire, stick your shiity mortgage up your arse, I will pay cash (FIAT $100 bills), with non consecutive serial numbers.

Yeah, great plan - now find a lawyer who'd risk their firm for a couple of grand they make from that transaction: it seems that liability for anything related to money laundering will fall upon them.

Basically the simple truth is that 95% of your "fiat" is now also tainted - have a nice poor life when nobody wants to take your money.

P.S. Their non consecutive serial numbers were accurately associated with you and stored by bank for the next 20 years

[_V_]

"What a fascinating story, Sir, now please provide full documentary evidence to all of the above, certified by Linklaters"

Or

I am a crypto millionaire, stick your shiity mortgage up your arse, I will pay cash (FIAT $100 bills), with non consecutive serial numbers.

[AtW]

People are so dumb. What it the source of the deposit "It's mixture of earnings saved, money I made over the years from investments, some from the sale of a previous property and the rest was an inheritance"

"What a fascinating story, Sir, now please provide full documentary evidence to all of the above, certified by Linklaters"

[AtW]

That doesn't make sense, why would you need a lender to buy a £1m house if you are a crypto millionaire?

Because you'd be paying off mortgage of a mug who earned his money legitimately?

What a shocker that banks don't want to accept ransoms paid by the Irish and Americans - they'd much rather keep money loaned against £1 mln house and collect monthly payments, thankyouverymuch.