Mortgage rates / interest etc

[Noel]

Let’s not forget then the 1st and 2nd world war, Korea, Vietnam, Falkland Isles, troubles in Ireland, Ukraine (we are pumping money into helping their as well as taking refugees), why London is the capital and wealth isn’t distributed evenly across the UK. We are all in some way living with the effects of something. The UK is owed by all ( we fought in all) of them and either people are still alive and living with the consequences, or their children’s lives were / are directly affected. Which in some cases will affect generations.

We were all still paying for WW2 until the 80’s,

….troubles in Ireland? Was that the 1919-21 Irish War of Independence?

 

[johna.clements]

Thank you, my bad, out the wrong number in.

No problem.

 

[johna.clements]

….troubles in Ireland? Was that the 1919-21 Irish War of Independence?

The little thing that was ended with the Good Friday/ Belfast Agreement

 

[johna.clements]

UK WW2 final payoff to USA loan was in 2006. Not that it really matters when printing money can win.
Dad was a Hurricane pilot.

We also stopped paying for the South Sea Bubble in 2015 and a few other things like the cost of paying the owners to free the slaves.

 

[Noel]

The little thing that was ended with the Good Friday/ Belfast Agreement

That was N Ireland as I recall.

 

[johna.clements]

That was N Ireland as I recall.

Which is in Ireland the island.
Things happened in the south as well. Plus here, Gibraltar, Germany and other places. Sadly many people were killed.

 

[Pineapple]

Again, I always find it very surprising that we talk about a percentage of GDP as a benchmark for overseas aid budgets. The UK had no surplus, it’s not in the black when it comes to our spending versus income. All foreign aid is funded by the UK Taking on National Debt. So, it’s not this generation that’s giving aid, it’s our kids. We all recognise that the national debt cannot just keep increasing and savings have to be made, the debate really is what we collectively consider important. UK GDP is estimated for 2022 to be 3,149 Trillion (12 zeros) now that’s still a huge amount of money when multiplied by 0.5%. To put it another way, you could sort out a huge amount of issue within the UK if that was spent on the poor within the UK, and that’s being spent every year.

3,149 Trillion is an extremely big "Pi"

 

[Hutzul]

Any chance you could Identify 1 to 9 for us, please, Jacob ?

Number 8 is Bojo. All the others I don't know

 

[Jacob]

Any chance you could Identify 1 to 9 for us, please, Jacob ?

https://www.itv.com/news/2019-07-18/boris-and-the-bullingdon-club-where-are-they-now

 

[Jacob]

Concentration camps.
https://www.bbc.co.uk/news/uk-england-kent-63411080https://www.bbc.co.uk/news/live/uk-63455519Violent attacks
https://www.bbc.co.uk/news/uk-england-kent-63453810Persecution
https://www.theguardian.com/uk-news...ng-migrants-psychological-torture-says-report

 

[Ozi]

Why should a landlord get a subsidy to buy a house but not a owner occupier.

This was never a subsidy or tax relief. Tax was payed on income which is entirely fare. Money In minus costs equals income. The interest on a mortgage is a cost just the same as paying a plumber or buying a carpet. Can you name any other business that pays tax on the interest charged on loans?

 

[Ozi]

I disagree....

The top 1% covers drs, lawyers, CEO and directors, etc etc.

They cannot move out of the country!

Those that I have contact with, were dead against the reduction from 45 -40% income tax. The situation as it stands now is fairly fair and I doubt Sunak will change it much.

The benefits system needs to stop being a top up to low salaries and the multinationals need to start paying a living wage, then the tax burden will start reducing.

It's not just multi nationals.

 

[Jacob]

This was never a subsidy or tax relief. ...

We have buy to let mortgages and no fault evictions.
These are supposedly being done away. Can't come too soon!

 

[Terry - Somerset]

There are inconsistencies in the way mortgage interest is treated:

• as a private householder there is no tax relief for interest payments on your main residence
• as an owner directly of a property which is rented out you will get a 20% basic rate tax credit on any interest payments, irrespective of the actual top rate of tax.
• if a rental property is owned by a company incorporated as a business, tax is an allowable expense. Complexities arise (a) businesses are subject to corporation tax, (b) implications of receiving income personally either through dividends or salary (c) stamp duty payable on transfer of an existing property to a business "umbrella"

A bit of a mess really - it could do with some consistency.

 

[Terry - Somerset]

We have buy to let mortgages and no fault evictions.
These are supposedly being done away. Can't come too soon!

There is a real need for an end to the demonisation of landlords - they are real people. Some may be, but most are not champagne swilling, caviar munching, Rachmans!

• I was not aware buy to let mortgages were being done away - a loan is a loan!
• Rules about notice periods and no-fault evictions need to be balanced, not one sided. There is room for improvement. Denying owners the right to recover property in a reasonable manner should their circumstances change would be an abuse of their rights.

There are 4.4m private rented households in England.

About half of tenancies are with landlords who rent more than 4 properties - broadly they make a business out of rental properties. The other 50% of tenancies are provided by 85% of landlords who own between 1 and 4 properties. 43% own only one property.

It seems plausible that most landlords become such either because they have (a) surplus income to invest, or (b) inheritance. Property has a track record of preserving capital, generating a (fairly) reliable income, and thus a good basis for long term saving/pensions.

 

[Jacob]

........

It seems plausible that most landlords become such either because they have (a) surplus income to invest, or (b) inheritance. Property has a track record of preserving capital, generating a (fairly) reliable income, and thus a good basis for long term saving/pensions.

Yes good for landlords. Not good for anybody else.

 

[johna.clements]

This was never a subsidy or tax relief. Tax was payed on income which is entirely fare. Money In minus costs equals income. The interest on a mortgage is a cost just the same as paying a plumber or buying a carpet. Can you name any other business that pays tax on the interest charged on loans?

Mortgage interest relief at source was given too private householders and was abolished. It would seem that private landlords are being put on the same footing as private householders.

Buying Real estate is different to buying chattels or paying for a service. Buying the real estate is a separate operation too letting the property. Subsidising private landlords creates an unfair advantage over private householders as the they have more money to spend on the property.

I would not be surprised if the buy to let market was beginning to throw up some gaming of the tax relief system. My son is going to University, I can afford to buy a flat for him to live in then sell it which would be better than paying rent. You are doing the same thing. Why don't we rent to each others children and claim the tax relief. Then a few years latter oh that worked well we did not have to pay so much why don't we rent our houses out each other.

 

[Jacob]

Mortgage interest relief at source was given too private householders and was abolished. It would seem that private landlords are being put on the same footing as private householders.

Buying Real estate is different to buying chattels or paying for a service. Buying the real estate is a separate operation too letting the property. Subsidising private landlords creates an unfair advantage over private householders as the they have more money to spend on the property.

I would not be surprised if the buy to let market was beginning to throw up some gaming of the tax relief system. My son is going to University, I can afford to buy a flat for him to live in then sell it which would be better than paying rent. You are doing the same thing. Why don't we rent to each others children and claim the tax relief. Then a few years latter oh that worked well we did not have to pay so much why don't we rent our houses out each other.

I suppose you could start your own not-for-profit housing association?

 

[johna.clements]

There is a real need for an end to the demonisation of landlords - they are real people. Some may be, but most are not champagne swilling, caviar munching, Rachmans!

• I was not aware buy to let mortgages were being done away - a loan is a loan!
• Rules about notice periods and no-fault evictions need to be balanced, not one sided. There is room for improvement. Denying owners the right to recover property in a reasonable manner should their circumstances change would be an abuse of their rights.

There are 4.4m private rented households in England.

About half of tenancies are with landlords who rent more than 4 properties - broadly they make a business out of rental properties. The other 50% of tenancies are provided by 85% of landlords who own between 1 and 4 properties. 43% own only one property.

It seems plausible that most landlords become such either because they have (a) surplus income to invest, or (b) inheritance. Property has a track record of preserving capital, generating a (fairly) reliable income, and thus a good basis for long term saving/pensions.

Many people are collectively demonised for no good reason. Whilst working away from home I have had good and bad landlords. I have had friends how have had worse.

Many people seem to think that all people on benefits are scroungers.
The current one seems to be that all Albanians are criminals.
We could make a long list.

 

[ey_tony]

You know these threads have run out of steam when people are blaming the ills of society on the unemployed, or boat people bobbing desperately in the channel, or as we saw earlier, "nurses claiming benefits so that they can look after their children part time". (That's a new variation of the "single mothers on benefits" so despised and hated by Daily Mail readers. Makes a change! )
But the real blame lies more with those with the power, at the top.
A representative sample here:

View attachment 146075

...or gangsters like the following, responsible for the deaths of countless thousands of lives and not one war crime to show for it!
Boris's alleged corruption was very meek by this lot's standards.