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Mortgage on shares and taxes
dayzman
Posts: 8 Forumite
Hi
Suppose one takes out £50k from a mortgage on their shares in a public company. If no repayment was made and the shares were forfeited, the £50k would be essentially tax-free. Also, the lender wouldn't be able to screw you over by selling cheap as well. Am I missing something here?
Cheers
Suppose one takes out £50k from a mortgage on their shares in a public company. If no repayment was made and the shares were forfeited, the £50k would be essentially tax-free. Also, the lender wouldn't be able to screw you over by selling cheap as well. Am I missing something here?
Cheers
0
Comments
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Mortgages are secured against property, not shares. Also, of you were able to use shares as collateral against a loan, in the event of your default I believe you would still crystallise a taxable gain or loss when those share were sold. Your credit rating would still be shafted.0
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Am I missing something here?
It sounds like you are living in an alternate universe. Try pitching that idea to the FCA.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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