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Bishop Bashes Boomers
Comments
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My business bank account sees less action than my personal account but costs me more, but why there is no risk (no overdraft) and less transactions.
If anything there should be an addition BTL tax on top, take back a chunk of the HB LL's are milking from the system.
Just make the interest and expenses payable out of post tax income rather than tax deductable. Might level the playing field up a little
I doubt their is a great deal of difference, risk wise, in a properly vetted BTL or private mortgage as far as the lender is concerned. Both she demonstrate adequate affordability and should be at least 120% backed by a marketable asset."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Your business bank account is probably not subsided to the same degree as your personal bank account. Remember your personal bank account is subsided by lots of other people going overdrawn especially those who do it without permission.My business bank account sees less action than my personal account but costs me more, but why there is no risk (no overdraft) and less transactions.
My business bank account is obviously subsided by some degree as I have free banking as long as I do it mostly online and only have about 30 counter transactions a month which don't involve the deposit of any coinage.I'm not cynical I'm realistic
(If a link I give opens pop ups I won't know I don't use windows)0 -
grizzly1911 wrote: »
I doubt their is a great deal of difference, risk wise, in a properly vetted BTL or private mortgage as far as the lender is concerned. Both she demonstrate adequate affordability and should be at least 120% backed by a marketable asset.
There may not be a great deal of difference risk wise but personal mortgages are regulated and BTL ones aren't .
This means the bank can charge as much as it feels it can get away with on it's commercial mortgage products while it can't on it's consumer products.I'm not cynical I'm realistic
(If a link I give opens pop ups I won't know I don't use windows)0 -
Why not scrap HB so then LL don't make any money out of it?
Do all LLs subsist on HB claiming tenants?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
There may not be a great deal of difference risk wise but personal mortgages are regulated and BTL ones aren't .
This means the bank can charge as much as it feels it can get away with on it's commercial mortgage products while it can't on it's consumer products.
Should BTL be a consumer product?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
No it's about the bank spreading the risk.
Even with people who aren't defaulting or in trouble because a lot of them are sole traders, if they have other lines of credit or other businesses if they have go wrong then they will lose the BTL properties.
Those debts are likely to be owed to different lenders to the mortgage company, and if the property is in negative equity the lender can lose out when it's sold off as they aren't necessarily the organisation that has to be paid off first.
One of my siblings lived in a flat that after she moved out was repossessed with the landlord's other rental properties because the landlord's other business went wrong. The properties are in a wealthy part of London and it happened while the housing market was booming.
Whilst I understand your example I'm not really sure what you are saying.
If using whatever risk managment banks have, they determine that very very few BTL mortgages are in arrears then it would seem logical to charge lower interest rates relative to loans that have a higher arrears rates.0 -
Whilst I understand your example I'm not really sure what you are saying.
If using whatever risk managment banks have, they determine that very very few BTL mortgages are in arrears then it would seem logical to charge lower interest rates relative to loans that have a higher arrears rates.
I think the answer is here.Your business bank account is probably not subsided to the same degree as your personal bank account. Remember your personal bank account is subsided by lots of other people going overdrawn especially those who do it without permission.
My business bank account is obviously subsided by some degree as I have free banking as long as I do it mostly online and only have about 30 counter transactions a month which don't involve the deposit of any coinage.Have my first business premises (+4th business) 01/11/2017
Quit day job to run 3 businesses 08/02/2017
Started third business 25/06/2016
Son born 13/09/2015
Started a second business 03/08/2013
Officially the owner of my own business since 13/01/20120 -
So you are saying that residential mortgages are subsidised whilst BTL are not?
What do you think?
87 % subsidised by 13%?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »What do you think?
87 % subsidised by what, 13%?
I think Ill give up as I have I've no idea what's being talked about anymore.
I thought Olly was inferring that residential mortgages are cross subsidised by related residential products (e.g. life, house, car, holiday insurances etc) which may not apply to BTL.0
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