Hi xelo33 Please can you explain what you mean by discounting at OIS thanks

Just heard from Barclays, seems that I do not have a hedge product after all, basically whilst interest rates are below my swap rate, I pay them. When interest rates rise above my rate they have the right to cancel the product rather than pay me!!!! Surely Panorama should be doing a special on this?

Hi Hope somebody can answer a question for me. I have two £500k rate swaps as detailed in an earlier post. I have just noticed in my rate swap confirmation (which is the only paperwork I have received!) that it states "In the event of the cancellation or expiration of the facility Agreement such cancellation or expiration will constitute an Additional Termination event under this Agreement with the Counterparty. For the purpose of this Additional Termination Event the sole Affected Party shall be Counterparty and "Affected Transactions" shall mean this Transaction What does this mean? Barclays have given me new loans rather than extending the facility so does this mean that I can terminate at no extra cost or does it mean as I suspect that Barclays have further stitched me in that I cannot get out of it but when interest rates rise above my swap they can get out of it? thanks for your help

Hi We have also been sold two of these swaps both for £500k protection over 15 years in 2007 one to a Limited Co and the other to a partnership. Both Property investment businesses. I have no complaint about the interest rate hedge however am very annoyed how we have been treated by Barclays since. Our loans were set up on a short term basis as we were told this was standard practice. We were charged a fee at the outset and told we would not pay fees on renewal! Our loans were on an interest only basis and I would argue if you had a capital repayment loan that this derivative was certainly not suitable for you. On renewal in Sept 2009 we were told that we had failed the banks new loan criteria and were to be moved to business support for our Ltd Company (the partnership is due to come up for renewal soon) At first we were told that all of the debt would be moved to capital repayment basis I have succesfully argued that only the debt above the swap should be capital repayment and we have been given two loans of 5 year terms one interest only the other capital repayment. we have been charged just short of £30,000 for renewing a debt of just over £1mil and our margin has been doubled. My issues are how could the bank sell me a 15 year term swap when i had a short term loan and is refusing to extend my loan for the same term as the swap. As the bank told me by hedging it would make me more secure in its eyes how come I have been moved to bus support been charged a massive fee and had my margin doubled when I have never defaulted on any payment! Would welcome any advice and thoughts Thanks