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  • Mortgages & Finance

    Are you paying down your BTL mortgages?

    It feels that since Mr Osborne did his work I have been battling with the Tax Effects

    Part one was to sell some property into my Company (Landlord Shuffle ) But I have come to relies that this is not really the way forward I am happy with what I have moved but I wont be moving any more at present

    Part 2 is what I call "make do and mend".

    The "make do" is looking at each Mortgage out standing and looking to reduce the Mortgages to around 75% or 70% and obtaining a better interest rate and fixing for 5 years

    The "mend" part is I am looking to improve my property and where I can increase rents as and when I have voids

    My aim over the long term is to reduce Interest and raise rents to cover my new Tax Costs

    I am hoping the next Govt raises Tax Thresholds But I cant guarantee this will happen but if it happens it will help reduce my Tax Bill

    I am finding funding my Pension (SIPP) a great help and I am coming to the point next year when I can start extracting tax free cash which will not effect S24 Tax Bill

    I am quite happy with my plans so far as long as we dont get a Labour Govt things should  work out well

    The godsend is we have some very good remortgage deals at present so I will be using them to great effect

    So what are your tips and plans around S24 what are you doing to reduce your tax bill?

    I may not reply to comments as quick as I normal  as I am off on my Holidays ...

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Whitley Bay be warned... DL is on the loose!

    Enjoy your holiday!

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    Dont tell every one

    No better holiday than Whitley Bay for two weeks

    lol

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    DL, what % LTV are you looking to be at with your portfolio as under 60% you should be getting better rates and lowering your s24 tax bill?

    I'm still not sure whether I should be reducing more as already in the 40s when it comes to LTV and s24 isn't a problem.

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    There is nowhere finer than Spanish City in Whitley Bay DL!

    I have been trying to pay down my BTL mortgages since the credit crunch but get continually frustrated by property maintence or the latest in government meddling to contend with! Do have a few BTL on repayment and a couple of commercials but my original plans were to sell off half the portfolio to pay off the other half by gearing up and keeping everything on IO. Am trying to pay down if I have the odd good month tho now.

    Section 24 is the game changer for IO.

    Pre section 24 my goal was always to provide good quality accommodation and improve and upgrade when I can however now find things are much more reactive just to stand still and fight the constant attacks on the modern LL. My energy is now in meeting complience rather than going the extra mile.

    Not convinced anyone in property will benefit from any wider tax breaks either. Property investors will be treated as a special case as with so much else recent legislation.

    Sorry not wanting to sound negative as still believe in BTL and would like to add to it again when things become a little clearer with the political situation just the LL is a political pawn for the wider failings of the property market.

    I intend to fight to keep what I have built up with much sacrifice until Mr Corbyn comes to take it away!

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    We over pay our mortgages by 100 or 200 per month. Small cost yet soon makes a difference. We are concentaing on seriously upping the standards of our properties (all HMOs) and getting much better rents. We ae going over to bills included with a fair use policy which  has worked so far. The fact that friends of existing tenants want to take over the properties says something.

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    Sounds like a good plan DL.

    I plan to do the exact same thing. Refurb if needed, then reduce mortgages to qualify a better rate... in that order!

    Due to recent refurbs I haven't reduced any mortgages yet.

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    I plan to reduce the mortgages in my own name. I am in the process of selling my former home which has the largest such mortgage. Another comes to the end of its fixed period at the end of this month. I intend to pay it down to under 60%LTV before getting a new fixed one.

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    DL, instead of your regular refurbing and upgrading, why are you not paying chunks off your highest LTV's?
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