C&G fixed rate ending but only offer SVMR

garyd

Thrugelmir wrote: »

C&G will be aware of your "other" debts. Face up to the situation you are in and tackle it head on. Low interest rates will not be around for ever.

??

Thrugelmir, I 'm not quite sure what you are implying but I AM facing up to the situation which is why I posted in the first place.
Call me old fashioned but imho the best way to deal with my debts is to pay them off. I believe a fixed rate mortgage would have helped me plan my finances. However it would appear this is not available to me so I must look at what is and run with it.
Whilst I have a reasonablly well paying job now and it seems fairly secure (thought that for last two, mind!) I am not in any where near as stong a position financially as when I first took out a mortgage hence my problems.
Any savings I have is now being eaten away by school fees. No way am I gonna take my daughter out of her school to let the state system ruin what chance she might have.
Appreciate your interest.

Thrugelmir

garyd wrote: »

??

Thrugelmir, I 'm not quite sure what you are implying but I AM facing up to the situation which is why I posted in the first place.
Call me old fashioned but imho the best way to deal with my debts is to pay them off. I believe a fixed rate mortgage would have helped me plan my finances. However it would appear this is not available to me so I must look at what is and run with it.
Whilst I have a reasonablly well paying job now and it seems fairly secure (thought that for last two, mind!) I am not in any where near as stong a position financially as when I first took out a mortgage hence my problems.
Any savings I have is now being eaten away by school fees. No way am I gonna take my daughter out of her school to let the state system ruin what chance she might have.
Appreciate your interest.

We all have choices in life. Whatever you decide to do, will in your mind be in your best interests. You are choosing the best use of your money. Therefore you have to accept your fate if your lender doesn't see it the same way.

MarkyMarkD

Gary

You suggest that you aren't making a profit on letting your flat, but you are.

Quite apart from notifying your lender (because otherwise you are in breach of your mortgage agreement), I trust that you have also informed HMRC about the letting business you are now running and the profit you are making? At 2.5% interest, you will be making about £500 a month which is quite a lot. (Rent - mortgage interest). Other costs are allowable, but I doubt they will come close to £500.

garyd

MarkyMarkD wrote: »

Gary

You suggest that you aren't making a profit on letting your flat, but you are.

Quite apart from notifying your lender (because otherwise you are in breach of your mortgage agreement), I trust that you have also informed HMRC about the letting business you are now running and the profit you are making? At 2.5% interest, you will be making about £500 a month which is quite a lot. (Rent - mortgage interest). Other costs are allowable, but I doubt they will come close to £500.

Letting business?
MarkyMarkD, I read this and didn't know how to take it. Was it meant as a dig, sarcasm, presumption?
By reading through the thread I appreciate that it may seem that I am making money out of the flat however I am 'letting' the flat as it is too small for me and the family as older kids have returned home due to the recession since we moved in to the flat and it just wasn't liveable (yes, I had five in one bedroom as a kid but that was then!). I am in too much debt already to have to sell at a loss (according to C&G, amongst others). I work full time shift work including weekends to try to get out of the hole we(me) are in. I refuse to voluntarily throw myself at the state for assistance when I have a chance to lessen the debt. We are in a house for £1700 per month. Paid for by me. Where's the profit?
Yes I could move to a cheaper neighbourhood but I do not want my family in the house at night feeling unsure about their safety whilst I am at work.
Obviously it would appear I am doing something very wrong.
I sincerely apologise if anyone is offended by that or feels I have commited a crime. I will take a(nother) step back and review the situation.
I hope I can do what is right by my family and the state economy without incurring the wrath of HMRC (I looked it up-the taxman).
Thank you all for your comments. Very much appreciated and I shall take them on board with the hope I don't fall and take my family down with me.
All the best.

MarkyMarkD

If you let a property, you are (like it or not) running a letting business.

I wasn't having a dig - I was stating a fact.

If you start a business which makes a profit, you are required to notify HMRC of that fact. And then you are required to calculate your taxable profit each year, and pay tax on it at your marginal tax rate.

The cost of renting alternative accommodation is irrelevant to your letting business. That is a cost you are incurring as an individual, not a cost of your business.

Your business consists of the income from rent, and the allowable expenses i.e. mortgage interest, letting agent fees, buildings insurance, gas safety certificates (I hope you are getting them once a year as that's another legal requirement), repairs and maintenance.

You can do what's right by your family and the economy by disclosing your taxable income which I somehow guess you have not.

You can do what's right by your lender and your mortgage agreement by disclosing the fact you are letting to the lender.

PayDay

garyd wrote: »

??


Call me old fashioned but imho the best way to deal with my debts is to pay them off. I believe a fixed rate mortgage would have helped me plan my finances.

If you do manage to get a fixed mortgage you would need a buy to let mortgage. Those who apply for a residential mortgage on a property they are letting, are committing fraud.

As others have said, you need to tell the taxman you are renting out a property and ask for consent to let the property from your mortgage provider.

I know it is not want you want to hear, but we all have to pay taxes and abide by the law.

garyd

I take on board what the last two posts have said.

I didn't realise I was running a business!

I was letting my flat out so I could afford to live in a bigger property to accommodate my family. Not to make a living as a landlord!

I now understand what has been advised to me and my quandry is is that due to my financial mis-fortune I am no longer in a position to obtain a new mortgage or change to a buy to let mortgage. But I can afford to pay for one!

So, because of these 'rules' I am now put in a position where I either kick out my eldest two on to the streets and move in to the flat or start winding up for bankruptcy.

And I DO pay taxes! And always have.

This is SO upsetting. I can't bare the thought of telling the better half what a pickle I'm in.

Again, apologies.

Cheers.

ILW

garyd wrote: »

Apologies for overeacting/misunderstanding.

I take your point. I didn't realise I was doing anything wrong, especially as my current rent for where I'm living is £1700 (family home near school) so I'm certainly not making a profit.

Thank you for your time and consideration.

If things are as bad as you are saying, why not move back into the flat and slum it for a while, saving about £700.00 per month?

Thrugelmir

garyd wrote: »

I take on board what the last two posts have said.

I didn't realise I was running a business!

I was letting my flat out so I could afford to live in a bigger property to accommodate my family. Not to make a living as a landlord!

I now understand what has been advised to me and my quandry is is that due to my financial mis-fortune I am no longer in a position to obtain a new mortgage or change to a buy to let mortgage. But I can afford to pay for one!

So, because of these 'rules' I am now put in a position where I either kick out my eldest two on to the streets and move in to the flat or start winding up for bankruptcy.

And I DO pay taxes! And always have.

This is SO upsetting. I can't bare the thought of telling the better half what a pickle I'm in.

Again, apologies.

Cheers.

These are difficult times for a lot of people. I'm sure that if require further advice you'll always find sound advice on this forum.

The sooner you break the news the quicker you rebuild your life. Personal incomes are in for a squeeze in the medium term so no point in gambling.

SouthCoast

If you start a business [STRIKE]which makes a profit[/STRIKE], you are required to notify HMRC of that fact.

I have made a small amendment.