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Nairaland Forum / Nairaland / General / Travel / Living In The UK: Property,Mortgage And Related (84925 Views)
Getting Into The UK Property Market. How To? Teach Us How To? Get In Here / Living In The Uk/life As A UK Immigrant / Living In Australia/life As An Australian Immigrant (2) (3) (4)
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Re: Living In The UK: Property,Mortgage And Related by ukay2: 9:38pm On May 30 |
Lexusgs430: what I did in the bolded....shortened the term by 7 years with £250 monthly overpayment |
Re: Living In The UK: Property,Mortgage And Related by Lexusgs430: 9:55pm On May 30 |
ukay2: Are you Investing using a SIPP vehicle........ This is probably another wonder (only drawback is you pay a yearly charge to provider + you can't withdraw till you reach retirement age)..... Plus of SIPP - HMRC pays your 25% towards each deposit...... Minus of SIPP - You pay about £120 per year...... 1 Like |
Re: Living In The UK: Property,Mortgage And Related by ukay2: 9:57pm On May 30 |
Lexusgs430: No ooo Using Freetradoe and Trading212 .....S&S ISA I do individual stocks after due diligence 1 Like |
Re: Living In The UK: Property,Mortgage And Related by Lexusgs430: 10:35pm On May 30 |
ukay2: You do same with a SIPP, but with a 25% sweetener from HMRC.....🤣 1 Like |
Re: Living In The UK: Property,Mortgage And Related by Bourne007(m): 10:40pm On May 30 |
And some have mobile banking apps with overpayment option on one's mortgage account. Icesnow: 2 Likes |
Re: Living In The UK: Property,Mortgage And Related by Estroller: 2:03am On May 31 |
Santa2: Congratulations on your new home. 1 Like |
Re: Living In The UK: Property,Mortgage And Related by jedisco(m): 7:06am On May 31 |
Congrats @ Santa2. I'm wondering if anyone here is involved in BTLs. Mention if you have. I'm in the south and running some numbers but things are look steep with the current mortgage rates. I'm not keen at fixing for 5 years at this rate. Want to get some nuance and see what the average margin is. I remember someone (deept I think) once mentioned a Nigerian in UK investment thread or something similar. It would be worth knowing what proper investment/income generating opportunities there are in both our homes (9ja and UK) moreso ones that are also suited to our demography. I've heard of folks who buy written off cars and fix and sell for a profit, also Nigerian stores e.t.c. 1 Like |
Re: Living In The UK: Property,Mortgage And Related by profemebee(m): 9:09am On May 31 |
i will be lying if i said i understood this lol pls can you explain with an example (even if it is with dummy data) thanks. shaybebaby: 1 Like |
Re: Living In The UK: Property,Mortgage And Related by Bourne007(m): 9:12am On May 31 |
Recently got a fixed rate of 4.66% for a period of 60 months, Duration of the loan: 35 years with TML. Hope this helps jedisco: 1 Like |
Re: Living In The UK: Property,Mortgage And Related by profemebee(m): 9:12am On May 31 |
and it seems there is a maximum amount or % one can pay per year for the overpayments (varies for each provider)? Lexusgs430: |
Re: Living In The UK: Property,Mortgage And Related by deept(m): 9:28am On May 31 |
jedisco: Guess this thread can fulfill that purpose |
Re: Living In The UK: Property,Mortgage And Related by deept(m): 9:35am On May 31 |
profemebee: Here you go, play and enjoy. The app will shop you how overpaying monthly or lump sum overpayment will affect your mortgage. https://www.natwest.com/mortgages/mortgage-calculators/mortgage-overpayment-tool.html?q=mortgage+calculator&brand=NATWEST§ion=personal&enginekey=wYnTjXmfABgYKBU6GMG3. 3 Likes 2 Shares |
Re: Living In The UK: Property,Mortgage And Related by Santa2: 10:12am On May 31 |
Lexusgs430: This is something I have been looking at and discussed extensively with the mortgage advisor when we were going through the process to ensure it was included. Omo that your LTV mad Oooo, Make I come tap anointing. You are practically Mortgage free. One question though, when you are 100%, Would you go back in again i.e get another property/mortgage (I know this varies with personal preferences) abi na to dey Jaiye loo. |
Re: Living In The UK: Property,Mortgage And Related by Ticha: 10:20am On May 31 |
profemebee: Usually 10% of the balance per year of the mortgage. Anything over that is likely to trigger an early repayment charge. 1 Like |
Re: Living In The UK: Property,Mortgage And Related by shaybebaby(f): 10:40am On May 31 |
profemebee: Haha. Okey doke, I'll lay something out when I'm done with work for today. |
Re: Living In The UK: Property,Mortgage And Related by profemebee(m): 11:06am On May 31 |
bless you .. thankssss will look through it.. we must learn something new everyday deept: |
Re: Living In The UK: Property,Mortgage And Related by Lexusgs430: 1:21pm On May 31 |
Santa2: We have 2 other BTL properties, but on the family home, it simply would remain mortgage free for life.... My children would have a property they can do whatever with, when we kick our cups ....... 😂😜 1 Like 1 Share |
Re: Living In The UK: Property,Mortgage And Related by Lexusgs430: 1:24pm On May 31 |
profemebee: If this thread exists, and people don't learn new tricks...... Wetin we gain, even an old dog, can learn new tricks....... 😂😜 3 Likes |
Re: Living In The UK: Property,Mortgage And Related by Estroller: 10:08pm On May 31 |
profemebee: If your mortgage rate is say 2.5% and you can access a savings account yielding say 5%. Instead of overpaying on that 2.5% mortgage, you'll keep the overpayments in the 5% savings account and make the overpayment with the accrued sum in your 5% savings account at the end of your fixed term. The strategy only works if you can get an interest rate on a savings account that is higher than your mortgage rate, so it'll be a bit difficult to pull in this current "high" interest rate clime. 1 Like |
Re: Living In The UK: Property,Mortgage And Related by Santa2: 11:11pm On May 31 |
Lexusgs430: Come and adopt me abeg .. Nice one Baba Lexus, you & madam have done well for your selves, Keep being a guiding light to those of us coming behind. Just like Jedisco I have also been wondering about BTL. Can I open a company strictly for BTL and get mortgage on the newly opened company(assuming I have the 25% deposit usually requested). Or is BTL usually best as an indiviual/couple. Could you give a rough overview of BTL best practise. Best way to set up, pitfalls to look out for etc. |
Re: Living In The UK: Property,Mortgage And Related by Lexusgs430: 11:45pm On May 31 |
Santa2: Either would work, it depends on what you want to do considering the tax implications, tax efficiency, complications and legalities........ Our BTL's are rented out to family members at zero margins....... So at the moment, we only benefit from equity appreciation + them looking after the properties...... Our BTL's are owned individually (nobody knows the future)........😂😜 3 Likes |
Re: Living In The UK: Property,Mortgage And Related by Regex: 11:49pm On May 31 |
Lexusgs430: Wetin be btl no vex. |
Re: Living In The UK: Property,Mortgage And Related by Lexusgs430: 11:52pm On May 31 |
Re: Living In The UK: Property,Mortgage And Related by deept(m): 1:42am On Jun 01 |
Santa2: Consider tax implications of you setup BTL in personal names because you are liable for tax on your btl income. Assuming your are in the higher tax band say 40% you will pay tax 40% on the the entire rental income before mortgage payment. Mortgage used to be tax deductable until a few years ago. You will usually be advised to set up BTL under a company then you can remove cost before before tax, corporation tax in this case. But you will still be liable for tax for whatever you pay yourself, I think the first 500£ is tax free. Disclaimer: Consult a financial advisor for proper advise. 5 Likes |
Re: Living In The UK: Property,Mortgage And Related by domin8(f): 10:38am On Jun 01 |
Morning all, Looking at moving from further north and buying a first property in either Manchester and Sheffield. Can anyone suggest the good affordable neighborhoods in bith cities suitable for young families with good schools, amenities etc. ? Manchester is the preferred though. Thanks. 3 Likes |
Re: Living In The UK: Property,Mortgage And Related by profemebee(m): 11:32am On Jun 01 |
thanks for the example.. very helpful.. i need to research on savings account with better rates.. and hopefully not taxable .. like ISAs Estroller: |
Re: Living In The UK: Property,Mortgage And Related by Estroller: 12:52pm On Jun 01 |
profemebee: Yes if the interest ≤ your personal savings allowance (PSA). You can earn up to £1000 in savings interest tax free as a basic rate tax payer and £500 as a higher rate tax payer. No PSA for additional rate tax payer. |
Re: Living In The UK: Property,Mortgage And Related by Santa2: 3:53pm On Jun 01 |
deept: Thanks or putting this into perspective! |
Re: Living In The UK: Property,Mortgage And Related by jedisco(m): 4:51pm On Jun 02 |
Bourne007: Is this BTL? If it is, is it repayment or interest only? Also personal or via ltd co? My main considerations are the yield and margin between mortgage and rent. Around me, for basic BTL (i.e non-HMOs etc) it's about 4-5%. |
Re: Living In The UK: Property,Mortgage And Related by jedisco(m): 5:14pm On Jun 02 |
deept: Hehe @the usual caveat.. most everyday folks looking to invest would not have enough to interest an advisor or even afford one. A ltd co is the sensible way to go about it for most. I'm in the process of setting a property one up. Already, I'm often work as an independent contractor via a my ltd co hence the whole process is not new to me. If the investment outlook is for the longterm, or to reinvest profits to build a decent portfolio, then BTL would work out much better for most. If one already has a main job hence not needing to dip in often then a ltd co offers many tax efficient means of deploying profits... 2 Likes |
Re: Living In The UK: Property,Mortgage And Related by Bourne007(m): 9:02pm On Jun 02 |
Interest-only can seem affordable but capital isn't shrinking. Repayment works out for me even though I'm paying more on a ltd co. jedisco: |
Re: Living In The UK: Property,Mortgage And Related by bsafolabi: 1:12am On Jun 03 |
Boss!!! I'm also looking to buy a house in Manchester with my young family, M20, M15 and M16 is okay for young family but affordability be my problem. I'll go for M9 or M40 jeje because it's cheaper, family friendly and Niger vibes. Equity appreciation wise Manchester is more better than Sheffield.... my opinion though. domin8: |
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