Another remortgage question(S)

Gorgeous_George

MarkyMarkD wrote: »

The HMRC rates for mileage reimbursement aren't meant to be profitable, anyway. In the long-term you are unlikely to make that much out of them, unless you constantly run bangers.

10,000 miles at 40p = £4,000

Tax saved at 20% = £800

At 50mpg, it still costs £1,000 just for the fuel.

I appreciate tha the tax credits make it seem a good deal (and it is - at taxpayers expense) but that car will need replacing every 5 years or so.

GG

mpg

I still need convincing of the negatives for it though

Rosiesworld

Gorgeous_George wrote: »

10,000 miles at 40p = £4,000

Tax saved at 20% = £800

At 50mpg, it still costs £1,000 just for the fuel.

I appreciate tha the tax credits make it seem a good deal (and it is - at taxpayers expense) but that car will need replacing every 5 years or so.

GG

My OH does in the region of 75k miles and will be (VT) giving the car back to the finance company at the half way point after 2.5 yrs.
At that sort of mileage its touch and go whether it will get there but has an unlimited mileage warranty for a while

Gorgeous_George

Check the small print. Usually, you can only 'give the car back' for free if the mileage is low.

There may be a 10p per mile charge for mileage in excess of 8,000 per year. I'm not sure of the exact numbers and any limits. Might be worth buying the rest of the car an selling. Just don't get caught out unexpected.

GG

MarkyMarkD

If it's on HP and you've paid off 50% of the original purchase amount, you can return the car irrespective of mileage, IMHO. I presume that this is what the OP means.

Gorgeous_George

MarkyMarkD wrote: »

If it's on HP and you've paid off 50% of the original purchase amount, you can return the car irrespective of mileage, IMHO. I presume that this is what the OP means.

But if you have paid off half and the car is worth less than the other half, you cannot just return the car. Mileage, scratches, service history are all taken into account. Certainly the case with some of these deferred payment scams but maybe not all.

Any that allow a car to do 75,000 miles per year will soon go bust so will be far and few between (IMHO, of course). It is worth checking the small print to avoid any nasty surprises.

GG

pollyanna24

mpg wrote: »

Dragging this up from the dead but:

After reading some other posts I have a new spin.
Would a remortgage or new deal with more money from existing lender
be a safe way to ride out a possible recession
If i tie in for 5 years with say an increase of £45k and put this in a savings account(whats a good AER) If the repayments make my monthly outgoings another £250-£300 extra which in itself i can afford but with the interest payments my share would be much smaller.

If all hell broke loose recession etc I could afford to pay my mortgage with the savings for approx 5 years.

I note the above interest. It's a good idea in theory. What I don't undestand is why people haven't just maybe saved the £45K - alright maybe not that much, but I have enough in my savings for a year's worth of mortgage payments. This way, you don't have the extra £200-£300 worth of repayments each month.

Isn't this just another case of borrowing more money to pay off other loans. Isn't this what the credit crunch is all about?

mitchaa

£445 per week wages
£175 per week tax credits inc child
£18 per week child benefit

I earn around £8k per year

Is the £445pw after deductions? How is he managing to fiddle the books in order to pretend he is a low earner in order to receive WTC and CTC? He cant pay himself £445pw surely?

£445pw is the equivelant of around a £32k salary + your £8k = £40k joint income. You shouldn't be allowed any benefits with an income like this?

Is this legal? If so, i guess this is a very common practice for those who are self emplyed?

That's a loophole in the system that surely needs looking into?

MarkyMarkD

GG There's a profound difference between HP and the sort of deferred payment scheme you are talking about. HP is far better, because there is a statutory right to return the vehicle once you've paid off half the capital, without any penalties or conditions regarding condition or mileage.

Deferred payment schemes are completely different, as there is always a contract mileage with a penalty for any excess, and also conditions re the condition of the vehicle.

Like I said, I am assuming that the OP has an HP agreement as otherwise they are living in a fantasy regarding their ability to return the vehicle early.

Rosiesworld

MarkyMarkD wrote: »

GG There's a profound difference between HP and the sort of deferred payment scheme you are talking about. HP is far better, because there is a statutory right to return the vehicle once you've paid off half the capital, without any penalties or conditions regarding condition or mileage.

Deferred payment schemes are completely different, as there is always a contract mileage with a penalty for any excess, and also conditions re the condition of the vehicle.

Like I said, I am assuming that the OP has an HP agreement as otherwise they are living in a fantasy regarding their ability to return the vehicle early.

We have checked and also told the dealer about our intentions and its normal Finance with black horse.

mitchaa wrote:

Is the £445pw after deductions? How is he managing to fiddle the books in order to pretend he is a low earner in order to receive WTC and CTC? He cant pay himself £445pw surely?

£445pw is the equivelant of around a £32k salary + your £8k = £40k joint income. You shouldn't be allowed any benefits with an income like this?

Is this legal? If so, i guess this is a very common practice for those who are self emplyed?

That's a loophole in the system that surely needs looking into?

Its not a loophole OH recieve £445 pw from a contract. out of that he has to deduct all his business costs now the tax man says its easier for him if he claims back 40p/mile for the 1st 10k then 25p for the rest. Now he has chosen not to get a big chelsea taxi and claim back all repairs insurance petrol etc etc etc. So he claims his mileage allowance and that wipes out his Income.

he pays a fair amount in other "hidden" taxes. so we certainly dont feel guilty about claiming what were alowed

he is in the business of savings lives and with doing 75K miles a year on our roads believe me he's risking his all day everyday.