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Original poster

Wrong landlords getting targeted!

161 replies

Guiltydilemma · 30/03/2016 11:20

I know as a landlord I'm unlikely to get much sympathy but feel that myself and my husband are in that bracket that always end up giving to the economy but never getting anything out of it and the the new tax rules for landlords are just the icing on the cake!
We both work and earn just enough not to be eligible for any tax credits and live in a very expensive city which is where we grew up. Average house price for 2 bed flat is about £300k!
We inherited a little money and decided to invest in property as this is the only way I can foresee us being able to help our kids on the ladder, help them if they want to go to university etc. without our help to live in the area they've grown up it will be impossible. we don't earn much and don't get any help from the government apart from child benefit despite our small flat costing 9 times what our combined salary is. We have high mortgages on our rental properties and residential home and now the government is going to screw us over taxing us to the hilt on these! On the other hand my friend who has several buy to let properties mortgage free is going to be unaffected by the new tax rules! How is that fair!!! For this that aren't aware of the way the new rules are going to work the government are going to decrease over the next few years the amount of mortgage interest you can offset as an expense! Grrrr

OP posts:
8angle · 30/03/2016 13:34

This is actually leveling the playing fields - because why should;d you get tax relief on the interest cost for the mortgage on your investment when i don't get tax relief on the interest cost for the mortgage on my home for my family to live in.

Talking about business's that buy property for cash is totally missing the point, because they are not getting any tax relief so they are already fully liable for tax on all the rental income earned.

Buy to let owners had an unfair advantage over buy to live owners and this has to some extent been reduced - but not fully.

Original poster
Guiltydilemma · 30/03/2016 13:34

It's 8.5 times a teachers salary sorry!
Still don't get why you'd have a 100% mortgage if you'd made so much money from your previous sale unless you'd decided to supplier it on a cruise??
I got a personal loan for 5% deposit back in the day and the better rate I got on my mortgage at the lower LTV calculated cheaper even adding the loan on. Loan paid off after 3 years! More equity in property, better rates! Fantastic! I don't think my business sense is that bad??

OP posts:
EssentialHummus · 30/03/2016 13:34

Sorry, cross-posted with a dozen others re HMRC.

londonrach · 30/03/2016 13:36

Me too essential. Grin.

LurkingHusband · 30/03/2016 13:36

I'm sure you've found in your research that HMRC staff do check the internet checks this kind of thing, especially when it's one move after another after another.

Not a good idea to develop a potential tax fraud in plain view ...

MaidOfStars · 30/03/2016 13:37

It's 8.5 times a teachers salary sorry
Where I live (half an hour commute to major city with ample teaching opportunities), a two bed house will cost you about three times a teacher's salary. This is entirely within the normal expectations of mortgage borrowing and repayment.

Original poster
Guiltydilemma · 30/03/2016 13:38

I'm just off now to feed the horses. Be back later!! Grin

OP posts:
londonrach · 30/03/2016 13:38

Op i really think you need to seat down with a tax advisor.

whattheseithakasmean · 30/03/2016 13:38

OP your posts are a sick making combination of self-pitying and smug - how you manage to feel both emotions simultaneously is a master-class in cognitive dissonance.

kirinm · 30/03/2016 13:39

Certainly in the owner / occupier market you can't borrow the deposit and the mortgage!

I'm struggling to feel sorry for you too OP. As others have said, BTLers have fucked up the market for many first time buyers who are stuck in rentals with ever increasing rents.

I read an article yesterday that said the Bank of England were concerned that BTL mortgages might bring about a crash in the housing market because the affordability calculations applied to normal mortgages aren't applied to BTLs. I have no idea why!

Buckinbronco · 30/03/2016 13:39

I think she's just quite dim tbh

Guiltydilemma · 30/03/2016 13:41

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leelu66 · 30/03/2016 13:42

Ps I plan to live in all my properties to avoid capital gains. One has gone up £70k in the last year!! Feck me thank god I bought it or my kids would have completely missed the boat xx

Complete with passive aggressive kisses.

Biscuit ODFOD

kirinm · 30/03/2016 13:43

Then it's the equivalent of a 100% mortgage. Except with an added lie.

Guiltydilemma · 30/03/2016 13:47

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Original poster
Guiltydilemma · 30/03/2016 13:48

I didn't lie. They didn't ask and I didn't tell them!!

OP posts:
Buckinbronco · 30/03/2016 13:54

You still had 100% mortgage though? Mortgage + loan.

It's not dim, I didn't pay more at all. I was 21 and it was by far my best option. I wouldn't have been able to buy and make the profit without 100% mortgage (it was actually 110% first time! Ha ha ha)

Buckinbronco · 30/03/2016 13:54

That was meant to say mortgage + loan = 100% debt purchase

kirinm · 30/03/2016 13:55

But you would've had to disclose that debt when applying for the mortgage? Maybe things have changed since you took that mortgage or BTLers get away with being economical with the truth. I have had to disclose all my student loans with evidence of how long I have left to pay them off - as part of the affordability tests.

Buckinbronco · 30/03/2016 13:55

You better hope I'm not dim OP, I might be the one giving you your tax avoidance advice one day

Buckinbronco · 30/03/2016 13:57

You used to e able to get away with anything tbh in the early 2000s tbh kirinm

ReallyTired · 30/03/2016 13:57

I haven't read the thread and I 100% support landlords losing tax relief on mortgages and paying more stamp duty inspite of owning two btl properties. Rather than thinking about self interest it's better to think about the general economy. I want my children to be able to buy their first property in the future. In fact I don't understand why the government hasn't got rid of mortgage relief entirely for btl.

I am more concerned for disabled people who might see cuts to their benefits. I am happy to pay more tax if means a disabled person can afford to have heating.

ivykaty44 · 30/03/2016 13:57

Op you don't get any sympathy from me, you own two homes and therefore you are "the rich" and you will be taxed.

It would be great if I had this issue Hmm there is nothing wrong with paying. When I started working I was paying 30% tax, since the 80s though tax is and has become a dirty word.

Taxes are needed to pay for service we all like to use, but no one seems to want to pay for

Original poster
Guiltydilemma · 30/03/2016 14:00

I declared my loan but I was otherwise debt free and told my mortgage lender I had loan as it would show on credit search. It was a cheaper option to take loan + lower LTV mortgage as the interest rates were lower and saved me having an indemnity policy within mortgage that would have cost thousands. I could maybe advise you on a few things Bronco!

OP posts:
Buckinbronco · 30/03/2016 14:01

No, you couldn't.