All the facts about this loan are top secret with Mr Mustard not even being trusted, as a member of the public, to be told the planned drawdown dates (as it will be in staged payments as the build progresses) or the frequency of the repayments or even the type of loan i.e. is the capital going to be repaid as we go along or will it be left to the end to repay in one lump sum (Mr Mustard is currently managing a multi-million euro portfolio of Spanish mortgages which have loan terms of up to 30 years on an interest only basis. Some were made to people as old as him so when they hit the ripe old age of 91 they will suddenly have to find £100,000 out of nowhere, their only 'asset' being a Spanish villa worth half what they paid for it and on which they borrowed 70%).
The repayment figures therefore are only indicative of likely repayments if you were to borrow £22.9m in one lump sum and then start repaying even instalments, including the capital, from month 1 all the way through to month 360.
Saracens will have to find £137,297 every month, even when there aren't any matches.
They will repay £49.4m in total (if they manage to) as interest comes to more than the loan. Given that Barnet Council were the lender of last resort, the only body foolish enough to put our (borrowed) money where their mouth is, they should have been charging at least 10% as this loan is, on Mr Mustard's risk rating index, somewhere between reckless Richard and crazy Cornelius.
Yours frugally
Mr Mustard
aka Dismal Derek (copyright Richard, allegedly cautious, Cornelius)
No comments:
Post a Comment
I now moderate comments in the light of the Delfi case. Due to the current high incidence of spam I have had to turn word verification on.