NR mortgage BTL help

barnaby-bear

clairet707 wrote: »

Not sure what you mean by tax deductible? Tax deductible from what?

If you have BTL you have to do a tax return - you are supposed to pay tax on rental income you can deduct mortgage interest and a small proportion for wear and tear... even if it works out at nothing owed you are still supposed to submit the return and can be fined for not doing so - they track people down via the TDS, so you will get caught up with - unless you aren't doing the TDS in which case you have other issues that may bite back

clairet707

barnaby-bear wrote: »

If you have BTL you have to do a tax return - you are supposed to pay tax on rental income you can deduct mortgage interest and a small proportion for wear and tear... even if it works out at nothing owed you are still supposed to submit the return and can be fined for not doing so - they track people down via the TDS, so you will get caught up with - unless you aren't doing the TDS in which case you have other issues that may bite back

Oh I get that bit, H is filling in the tax return this week... I didnt get what Pastures new meant about the B&B being tax deductible

Yup our tenants deposit is lodged in scheme (as said we are doing our rental by the book, we are treating our tenant how we would like to be treated, which is more than can be said for our LL)

neverdespairgirl

Wouldn't you be better off selling?

On the NR deal, you are paying £231 a month on top of the rent to pay the mortgage, and then other running costs a year. That's nearly £3k a year you are subsidising the house by, as well as the value falling fast.

silvercar

In the short term, stick with NR and change the mortgage to interest only. That should reduce the repayments to something manageable.

The problem with selling is that you really need to have the property empty while you sell and that means potentially no rental income for a few months while it sells.

poppysarah

I think northern rock have said they want to empty out the mortgage book

http://www.independent.co.uk/news/business/news/northern-rock-the-timeline-800709.html

Northern Rock also announces it will focus on growing its deposit base while shrinking its mortgage book.



You need to look for a long term solution.

Premier_2

poppysarah wrote:

...Northern Rock also announces it will focus on growing its deposit base while shrinking its mortgage book.

Northern Rock might have to turn away savers

Northern Rock may have to close its doors to new savers within days after a recent surge of deposits put it close to breaking competition rules imposed after its nationalisation in February...

Rock removed a number of savings products from the market this week to stem inflows, but experts said that this was unlikely to deter savers scrambling for havens after recent banking turmoil. If the cash inflow lasts, Rock could reach its limit in the next few days, forcing it to stop taking money from new customers...

Michelle Slade, of Moneyfacts.co.uk, the financial website, said: “Northern Rock has already cut rates to deter customers, but that clearly hasn’t worked as savers have been queueing at its doors to take advantage of the government guarantee. It appears to be close to exceeding the limit.”

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4870885.ece

nollag2006

SquatNow wrote: »

Basically, you're screwed.

You're going to have to accept the higher payments.

Then in about a years time you'll fall behind, the place will get repo'd and you'll be left with the N/E bill to pay off.

You should have sold the house a year ago.

Yes my comments are harsh. I don't do fluffy-fluffy-hug-hug I do "this is what your situation means".

Put the house on the market at the lowest possible price you can take. Get a £10k unsecured loan to allow you to lower the asking price even more. Then pray it sells as if it doesn't you'll end up bankrupt.

Barratts just started offering 40% of list prices. Houses price drops are going to accelerate.

Another bear that has gone very quiet since shortly after he made this wildly inaccurate prediction.

This particular bear had a nasty habit of responding to questions with the acronym "!!!!!!". Classy !

His website where he outlines how best to force entry into a house is a particular favourite of mine:
http://www.squatnow.com/Entry.aspx

Wonder why this bear disappeared ? Has he, like so man others, given up waiting and gone out and bought?

Fire_Fox

Why did you feel the need to dredge up an old thread and 'get one over' on a long gone poster? Save your peurile 'bull and bear' taunting for the 'Debate House Prices & The Economy' board please.

PasturesNew

Since this has resurrected ... I was asked what I meant about tax deductible.

The OP described their situation as contracting. Contractors are self employed specifically through a Limited company, which they can do by setting up their own Ltd company, or by operating under an umbrella company. As such, legitimate business expenses (e.g. a B&B) are tax deductible from their invoiced amounts through the proper tax channels of their Ltd company (or via an umbrella).

As the OP had no idea about this, I can only guess that they aren't contracting at all, but were employed on short-term contracts, which is entirely different.

For those interested in the OP, read her history and it looks like they're buying another house.