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Young Persons Little Mortgage.

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Comments

  • I have a yourbank mortgage and they tax me an extra £60 a month by HMRC due to benefit in kind. Quite maddening.

    That doesnt sound very helpful !

    Sorry for asking a personal question but is it just added on to your mortagage payments or ?

    And do they only apply this extra because the payments are below a certain threshhold? Thanks !
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    OneDay wrote: »
    That doesnt sound very helpful !

    Sorry for asking a personal question but is it just added on to your mortagage payments or ?

    And do they only apply this extra because the payments are below a certain threshhold? Thanks !

    Working for an employer such as a bank has perks. Such as discounted loan rates. So the HMRC taxes the benefit that the employee receives.

    You should be able to find out details of this at your work.
  • OneDay wrote: »
    That doesnt sound very helpful !

    Sorry for asking a personal question but is it just added on to your mortagage payments or ?

    And do they only apply this extra because the payments are below a certain threshhold? Thanks !

    It comes out of my RBS wage, my taxcode is 389L to take this into account.

    Yes it's because it's under a threshold. Mine is a five year fixed with another 4 years to go.
    Mortgage 1: May 2012 £90,000 April 2020: £47,000
    Mortgage 2: £270,000😱 Jan 2019 £253,000 April 2020
  • hcb42
    hcb42 Posts: 5,962 Forumite
    just a word of caution, location location location.

    I am from North Manchester originally, and even in the absolute worse areas I think it would be a struggle to find something on that budget. In fact, in a not particularly nice area where I lived 20 years ago, you would still struggle to get a terrace house for £80K. You dont want to buy something that is potentially unsellable and in a terrible area where you dont want to be - then you might regret getting on this wonderful property ladder thing...just be careful! (and remember insurance will be higher in these areas)
  • Fantastic that you're so keen to do this and having your head so firmly screwed on!

    I'm in a similar position to you, aged 22, 23k salary, and recently moved into a house/flat of my own at £85k. Totally manageable and yours will be too given the prices you're looking at (I'm in the Midlands).

    Good luck, keep us posted!
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