Is today the day stoozing died?

JimmyTheWig

Strapped wrote: »

With our offset mortgage, you can have linked accounts in other people's names. It is almost becoming viable to "pay" family to put their £££s against our mortgage since we can "pay" them the same rate as they are getting elsewhere but receive a greater credit against the mortgage.

How do they deal with the income tax on this money?

YorkshireBoy

JimmyTheWig wrote: »

How do they deal with the income tax on this money?

I would imagine it would be 'gifted'. Do you pay tax on 'gifts'?

LongTermLurker

Strapped wrote: »

With our offset mortgage, you can have linked accounts in other people's names. It is almost becoming viable to "pay" family to put their £££s against our mortgage since we can "pay" them the same rate as they are getting elsewhere but receive a greater credit against the mortgage. (Admittedly only just but if rates fall still further and deals dry up this could be a good option all round). :cool:

Don't do it - it's a potential nightmare. If you offset your family's savings against your mortgage and your bank collapsed (or just decided to recoup/sell on the debt) your family would have just paid a chunk into your house. You would owe them money you didn't have and they could potentially claim equity (which would make getting another mortgage very difficult as there would be external "interest". On top of that, as Jimmy says, it could be claimed that you are paying your family interest; because you would be paying it gross, they would need to delare it as untaxed income and could end up being taxed at 40% depending on their personal circumstances.

It could get very messy - don't overcomplicate your finances.

YorkshireBoy

LongTermLurker wrote: »

Don't do it - it's a potential nightmare. If you offset your family's savings against your mortgage and your bank collapsed (or just decided to recoup/sell on the debt) your family would have just paid a chunk into your house.

If 'Strapped' has the same YBS offset mortgage I have, the family funds are held in their own names.

As such, they have their own £50K protection, ie their funds would not be used to 'net down' my situation should YBS go under.

YBS call it their 'offset plus' feature...

http://www.ybs.co.uk/mortgages/types/offset/offset_plus/offsetplus_b.jsp

Strapped

Yes, that's the one YB. I wouldn't contemplate a situation where their savings weren't in their names (and I doubt they'd be too keen either!!)

What they did about tax would be entirely their responsibility but personally I'd regard it as a gift.

realaledrinker

Best I could do with a recent £21K 6m stooze with Virgin Atlantic card (£50 fee) was the 6% on offer with Tesco (not yet reacted to latest 1% BoE drop).

Every little helps.

YorkshireBoy

realaledrinker wrote: »

6% on offer with Tesco (not yet reacted to latest 1% BoE drop).

Better than that, they haven't reacted to November's 1.5% cut either. :j (unless the 0.5% cut on 27/11/08 was in relation to both October and November cuts...unlikely as they totalled 2%?).

Although they do say on their website...

"Important Customer Information

Recent Bank of England base rate decrease

In light of the recent Bank of England base rate decrease, we are currently reviewing our savings interest rates. We will make an announcement on this shortly."

JimmyTheWig

realaledrinker wrote: »

£21K 6m stooze with Virgin Atlantic card (£50 fee)

That, of course, is the other option.
The problem we have is getting the interest to cover the BT fee and still make a profit. Short-term deals with low or no fees wouldn't have this problem.
Are there many of these about?

geet

Hello, All,

I don't know if I can call myself a stoozer. I am careful and do the tricks but I have unexpected expenses and the pot works more often than not as a buffer. I suppose I am a low-level stoozer in that I do put in £3K into ISA - second year running now.

Just two days back I gleefully reported in another thread that for the first time I got more than I asked for. But now having done the maths and caught up on my posts - one from Egg saying savings interest is down from 4.75 to 3.25 and ISA from 6.05 to 4.55 - I feel deflated.

I mean I have to pay 3% handling fee to the £13.5K that Virgin has approved. That is £405. Then I have to close two credit cards with around £10.5K. That leaves me with £3K for an ISA that will give me around £180 for 16 months. Where does that leave me! Of course I have a kind of continuous £10K interest free loan...

:-(((

YorkshireBoy

geet wrote: »

But now having done the maths and caught up on my posts - one from Egg saying savings interest is down from 4.75 to 3.25 and ISA from 6.05 to 4.55 - I feel deflated.

I have some more bad news for you. They're now 2.0% and 3.55% respectively...

http://new.egg.com/visitor/0,,3_54050--View_451,00.html