Mortgage Rate Rises
- Thread starter glenimp617
- Start date
I did consider going interest only and then whacking my "equivalent" mortgage payment in salary sacrifice pension. I then take 25% as a lump sum tax free and pay tax on the rest. Now that lifetime allowance has lifted, could be a real possibility.
Permabanned
Doesn’t everyone already pay their mortgage by sacrificing wages? Or is this another tax aversion thing?
I sacrifice my wage to pay for your mortgage if that is what you mean?
Salary sacrifice - mortgage payment taken from gross pay not net. So avoid tax. Basically same as pension.
They should cap it though. Because otherwise it's another perk that would pay more they bugger your mortgage!
Permabanned
Yeah as I thought a tax avoidance thing. To benefit those better off as usual.
Caporegime
Um, it would benefit ANYONE who has a salary and a mortgage.
Caporegime
Got a job and earn over ~12k then anyone can do this, earn less and you ain't getting a mortgage anyway.
It not even a real thing atm just a petition.
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Permabanned
Does everyone benefit by the same amount?
As a percentage - yes.
It should have caps. Maybe the first 500 ppm of of your mortgage payment is tax free. Because yes, otherwise it would benefit the richest the most.
It Would also do nothing for renters.. Unless you did the same here.
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Permabanned
Exactly it’s benefits those better off as I said. Because those already better off just need those extra dollars. Of course turkeys will vote to cancel Christmas.
Associate
The Americans can claim (capped) tax savings against their mortgage payments!
We could even the playing field and you could cover all of your own bills before you start dipping into my wages, if you like?
Unlikely, inflation is proving to be stickier than expected and markets now expect BoE to move again with 5.5% being realistic by 2024. Quite a bit of movement in Bond Markets again in the last 2 weeks - not to the extent of the Trussenomics of October but significant to suggest that interest rates have not peaked.
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Permabanned
Calculate it I’ll write you a cheque.
Soldato
Its a dumb idea.
Eg you lose your job, your paying more mortgage from your savings since you cannot have it deducted pre tax (you paid tax on it).
Far better if we need to lower mortgage costs would be to reintroduce MIRAS. (Mortgage interest relief at source), where it had the same effect but would apply to everyone who had a mortgage equally.
And can be easily capped to £x or %x etc
Eg you lose your job, your paying more mortgage from your savings since you cannot have it deducted pre tax (you paid tax on it).
Far better if we need to lower mortgage costs would be to reintroduce MIRAS. (Mortgage interest relief at source), where it had the same effect but would apply to everyone who had a mortgage equally.
And can be easily capped to £x or %x etc
Soldato
Scrapped by Gordon Brown as a middle class perk.
Soldato
Yes although it had already been cut previously and was deemed out of date before Labour came to power.
IIRC it was capped to £25k when the average houses were starting to shoot up in value.
It was pretty irrelevant and most people hardly noticed the impact as interest rates were falling anyway, so the real terms impact was basically that most people didn't see any benefit from a couple of interest rate reductions.
You may also lose your job, suffer a life changing injury etc.
For me we are choosing to throw any extra money at the mortgage, therefore if anything ever happens, you will always have a roof over your head. Plus, although the future seems a very long way away for you both - trust me, you blink and you're old
I'm not saying to live frugally, as of course, life is for living, but we took out our first mortgage in 2006, new property in 2010 and will have paid off the mortgage by 2024 (mortgage £174k, property now worth approx £300k).
I'm more of plan for the future as oppose live for the now!! No matter what happens, we will always have a home.
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