MRP and the annuity rate

We have just taken on borrowing for the first time to buy some investment properties so this is the first time we have ever had to consider MRP. We are using the annuity method however we are a bit confused as the interest rate we are to use. All the guidance says is the PWLB rate however is there a rule that it must be the annuity, EIP or maturity rate? Any help on this would be most appreciated.
Parents
  • Alluding back to the comment from the colleague at Central Bedfordshire concerning the MRP curve, the lower the annuity rate used the less likely (logically) auditors are to query it regardless of the source. Likewise the lower the assumed asset life. Ultimately it's all about being prudent and reasonable.
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  • Alluding back to the comment from the colleague at Central Bedfordshire concerning the MRP curve, the lower the annuity rate used the less likely (logically) auditors are to query it regardless of the source. Likewise the lower the assumed asset life. Ultimately it's all about being prudent and reasonable.
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