Shawbrook Bank 2year 3.8%

calypso_rhapsody

You can find out how your NI contributions are by getting a pension forecast via https://www.direct.gov.uk/pensionforecast

zx81_basic

zx81_basic wrote: »

I have 69k in 2x bonds, one ends 25th Aug (tomorrow) and one at the end of the month, i have applied (online 21st aug) for shawbrook 2yrs @ 3.8%.
my plans is to put half in - then the other half a week later. I got confirmation via email. im still waiting on the confirmation through the post.
is it possible to apply for another fixed rate account somewhere else incase this one dosent come through in time,
so i have something to fall back on without losing days interest?
the maturing dates for both bonds are on saturdays so they wont be in my account until monday.
never heard of shawbrook but its listed on MSE and covered by FSCS.

I'm unemployed, I don't pay any Tax (R85 form used), and don't claim any state benefits. would I be entitled to help elsewhere?
I was made redundant years ago (company closure) and had to sell my house and move back with my parents (pensioners) until i find a job.
i have used my ISA allowance and need an income from these bonds, so i keep money to last me the year, then take out the interest yearly.

Is there any solutions in my situation? I thought about buying a house to rent but as Ive seen here on the forums, this could cause a lot of problems regarding bad tenants, fees, etc..

Advice is greatly appreciated
zx

If I was to purchase a property to rent, lets say monthly rental income is £400 minus insurance and rates, and this would be my only income, would I have to pay tax on the income? Would I need to file a tax return?

I will have around £20k spare after the purchase, this will be put aside for fees and any work needing done in the future and some to fall back on if I don't get a regular tenant.

Put aside all the pitfalls on being a landlord for the time being ;-)

Thanks in advance

oldvicar

zx81_basic wrote: »

If I was to purchase a property to rent, lets say monthly rental income is £400 minus insurance and rates, and this would be my only income, would I have to pay tax on the income? Would I need to file a tax return?

I will have around £20k spare after the purchase, this will be put aside for fees and any work needing done in the future and some to fall back on if I don't get a regular tenant.

Put aside all the pitfalls on being a landlord for the time being ;-)

Thanks in advance

If £400 per month rental were your only income?? I imagine that you would show the same enthusiasm for getting good interest on the remaining £20K as you do on the full £69K, so there would be interest income too.

Either way, you won't pay tax on the rental income unless your total income (including state pension when you are old enough to claim it) after deducting property expenses exceeds the personal allowance (maybe £8,100 I think this year). But having rental income does usually require you to submit a tax return, which isn't difficult.

Of course if that sort of yield on rental property (£400 per month on a £49K property) is available to you, you could always gear up and buy 4 such properties with 75% BTL mortgages on each. The yield at these levels is sufficient for you not to need any other income to get the mortgages. With interest and other costs tax deductable, you would probably still remain a non-taxpayer, but with double the lifestyle. You could even end up as the richest man in your street .

Al_Ross

Did you ever here back from Shawbrook,I like you got an email but nothing else yet,been a few weeks now and during that time the 2 year fixed has been withdrawn.

They could at least tell me if I've missed the boat on that one.