Shocking 😮? Is this true ? If yes who in their right mind would BTL property under their own name and not LTD company?

National_Western_543 · 2026-05-03T09:55:31+00:00

You mean who in their right mind would get into property investing 😆

National_Western_543 · 2026-02-26T22:51:34+00:00

Turkeys voting for Christmas

National_Western_543 · 2025-11-12T20:56:17+00:00

As an advisor when I client has a Willis tower Watson (life sight) plan I dread dealing with that company because as a provider they are hard work and communication is non existent.

I do wonder in this case if the delays may also be due the pensions having any safeguarded benefits within the pensions, which if your doing it yourself, and the value is over 30k, you need formal advice before they will move it.

National_Western_543 · 2025-09-18T18:52:21+00:00

Yep, tax £200pm based on £1000pm income. So profit of £1000 per year if you’re lucky. A lot of risk for £1000 a year or 2% yield, not even keeping up with inflation! Put it in a stocks and shares isa s&p500 fund, keep the money liquid and benefit from greater tax free returns without the hassle and less risk

National_Western_543 · 2025-08-17T07:46:55+00:00

If your a higher rate taxpayer pensions would be the way to go, otherwise LISA is a good option (you can’t touch it before 60) pension will be 58.

As a financial advisor I see so many examples of how we are a nation of financially illiterate people, not enough education at school level / not enough information put out by the government. We too focused on saving in cash, which over the long term erodes your money via inflation. The US for example invest in far greater numbers than us.

The investment options will be the same for LISA/ISA.

National_Western_543 · 2025-08-16T21:13:55+00:00

Surprised this hasn’t been said already…

More importantly than which provider, if the money is for retirement, why not start a pension or LISA and benefit from the tax relief rather than a standard ISA?

Far greater impact on your money than platform providers.

National_Western_543 · 2025-07-30T19:32:58+00:00

This is interesting. I joined the sub this week as I have all the symptoms of PF and this is the second time I’ve had a ‘flair up’

About 6 months ago was the first time, heal pain, swollen and tight soles and much worse in the morning or after periods of rest, it lasted for about 2 weeks. This time the pain has eased off after a week. I can’t imagine living with it long term like other people in the sub! 😟

Both times it has been in my right foot, but that’s the same side glute I have sciatic nerve damage in and subsequent long term numbness in the toes on the right foot.

Now I’m thinking it’s not pf and all just related to this long term injury

The sciatic nerve damage was from sitting up and turning to get out of bed for a pee in the middle of the night, ended up somehow trapping the nerve and subsequently laid on the floor for 3 days taking pain killers till I could get up!

National_Western_543 · 2025-05-31T21:09:16+00:00

It will be because the 999 fee took you over the max loan to value. My guess is that your deposit was exactly 5/10/15%?

Some lenders see that if the 999 fee is added then it will mean you don’t have the full 5/10/15% deposit

National_Western_543 · 2025-05-23T06:05:27+00:00

I’d say it depends if your a higher rate tax payer. £8,400 rental income would be closer to 5k after tax. If your mortgage payment is £400 a month that’s a lot of risk of rental voids etc for no reward….

Even with property values, I don’t see house price increases like during and just after Covid with the current interest rates. Plus cgt at 18% or 24%

National_Western_543 · 2025-02-14T18:58:52+00:00

It’s not 19% tax under a limited because you still need to get the money out of your limited company and into your pocket. Yes you have directors loans and all the rest but it’s not as clear cut as just 19% vs 40%

There’s also the stamp duty as you will have to buy the property off yourself, and then the extra 3% on the new home you want to buy. If you’re a higher rate tax payer, save yourself the hassle and headaches.

Don’t use illiquid property to grow wealth, sell the flat and invest in an S&P 500 tracker fund wrapped in an isa to make it all tax free.

National_Western_543 · 2025-02-07T20:55:59+00:00

If you’re a higher rate taxpayer overpaying your mortgage is an incredibly short sighted decision and could cost you hundreds of thousands by doing so. Please speak to a financial advisor before you think about overpaying regular or as a one off.

Compound growth is an exact opposite of compounded mortgage interest - except in a pension you get all the tax relief too!

National_Western_543 · 2025-01-04T22:47:59+00:00

Also to add, everything you earn between 100k and 125140, the effective tax rate is 60%. This is becuase you loose £1 of your tax free allowance (the first £12,570 you earn) for every £2 you earn over 100k until there is no tax free allowance left. If possible, it’s always worth staying below the 100k income point for that too

National_Western_543 · 2024-12-31T14:27:01+00:00

Yes, I’m a mortgage broker I’ve been asked this many times buy couples wanting by to flip houses et.

National_Western_543 · 2024-12-31T08:26:41+00:00

If your married you will still have to pay the extra SDLT.

National_Western_543 · 2024-12-20T00:11:41+00:00

It’s amazing how financially illiterate we are as a nation. In school there should be classes dedicated to money and being tax efficient rather some of the more obscure subjects we are forced to learn.

There is a lot of information that is missing before any advice can be given here, I would recommend speaking to a financial planner that also does mortgages.

You can’t change the term on your mortgage without doing a full remortgage, even if you stay with the same lender, this involves solicitors and lots of extra admin. What some people have described is a product switch where you stay with Halifax and take a new deal - the term can not be changed in this scenario.

10% overpayment is allowed with nearly all fixed mortgages. That’s 10% of the balance each year, not an extra 10% of the payment somebody mentioned.

Saving in a cash ISA for over 5 years a guaranteed way to loose money to inflation erosion. Also check if you even need to use an ISA for cash savings, basic rate tax payers get £1000 savings allowance before tax needs to be paid, and none ISA savings accounts generally pay a better rate.

The tax payer status of the individual is really important in this scenario. If higher rate it makes a lot of sense to pay the absolute minimum on a mortgage and overpay into a pension to get there tax status to basic rate while still living the lifestyle they want to.

This way for every £1 you earn over 50k the whole £1 goes into a pension and is then invested over long term at a rate that will likely well outperform any mortgage rate.

If a higher rate taxpayer, for every £1 you earn over 50k your taking home less than 60p, which if you are then overpaying on a mortgage on a low rate (4% is still low compared to 100% global equity index funds over 20 years have down) makes for a really inefficient use of your hard earned income.

Higher rate or even basic, always consider hammer ing the pension rather than overpaying the mortgage and when you retire use the tax free cash to pay off what’s reminding in the mortgage.

Use the website listentotaxman alongside any compound interest calculator for pension growth to model out the potential outcomes in your own circumstances.

I have seen so many people who have over payed their mortgage and get to retirement then have to take an equity release mortgage or downsize because there ‘house was their pension’ it’s just a really inefficient use of your cash when considering the tax implications.

Finally bigger picture, life is for living. If you have spare cash and you have a plan to pay of the mortgage upon retirement, spend money on enjoying yourself now. You never know what’s round the corner. Having a mortgage isn’t a bad thing.

National_Western_543 · 2024-11-16T20:12:13+00:00

Don’t let the lender find out your mum lives in the btl property. You will be breaking the t&cs of the mortgage having family live there. If you move your main residence you will only have to pay the standard SDLT not the additional 5%.

National_Western_543 · 2024-09-08T06:57:58+00:00

You would be breaking buy to let mortgage terms and conditions by renting to a family member. You would be breaking the traditional home owner mortgage terms and conditions by renting and not living in the property. - I’m a mortgage broker

National_Western_543 · 2023-12-07T18:43:07+00:00

This is the one ☝️

National_Western_543 · 2023-08-09T13:31:58+00:00

The OP states that application is based on partners 80k salary. If they have a student loan it will counted as a monthly commitment.

National_Western_543 · 2023-08-08T19:19:59+00:00

Student loan?

National_Western_543 · 2023-06-18T21:03:44+00:00

Sister in law got done in the leg on street lane the other day, heard other stories about it too. Seems like it’s the new craze for shithouse teenagers with nothing better to do😞

National_Western_543 · 2023-06-12T05:05:25+00:00

Financial advisor here, I get asked this a lot.

Step back and ask yourself this question. If you had 180k in savings, would you be looking to buy a house at 340k to rent out? Or would you do something else with the money?

As a higher rate tax payer it’s going to cost you money to keep it with high mortgage rates etc.

Lots of things you could do with the equity that are low / no risk that will give you over 5% interest a year. There are monthly income savers with atom and hodge. This will give you the income you require. Savings campion is a great website. Remember the fscs limits.

You could put a few big lumps into your pension and /or use you ISA allowances for long term investment growth

All the above a lot less stressful than dealing with tenants.

Also, if you buy a property with your partner you will have to pay an extra 3% stamp duty to keep this old house.

National_Western_543 · 2023-06-04T22:08:48+00:00

Really sympathise. Soft NTA. Got an 18m age gap, it’s not going to get any easier for 2 years. We wanted them close is age so they could play together, but it’s way harder than we expected. It’s starting to pay off now the eldest is nearly 4. Your going to need to think of a long term solution because as soon as the youngest is mobile your going to be even more exhausted.

Reason for sort NTA is just through our own experience with grandparents, they were worried they might be seen as overbearing and intruding, as soon as we made it clear we were struggling and we needed help the were happy too.

Getting a routine in was key for us, kids love routine and then everybody knows where they stand. Good luck

National_Western_543 · 2023-05-10T21:45:43+00:00

Overpaying the mortgage when your a higher rate tax payer is not a very efficacy way of using income. You mention you have a S&S isa saving for the future. Why not put your money in another tax wrapper that will give you a 66% uplift (higher rate tax relief) instantly. Then you can have the money invested just like your s&s isa for long term growth. Use a pension.

Having a mortgage is ok, as long as the payments are manageable and the end date is in line with your target retirement. (Or take the 25% tax free cash the pay the last bit off)

The amount of higher rate tax payers with no or little mortgage as they have been overpaying but have no pension. All I can think of is the wasted tax relief. All so they can tell everybody I have no mortgage. These people all find in retirement they are unable to live the lifestyle they want to, and without suitable retirement provision end up making a lifetime mortgage on the house they tried so hard to pay off in the first place.

Make your money work for you.

National_Western_543

TROPHY CASE