Re: The Budget

Not sure that stacks up...

The ongoing value of a house is not relative to the mortgage originally secured on it or the rent charged to live in it.

Re: The Budget

If you end up with negative equity how will you pay off the balance of the mortgage at the end of the term? Buy to lets are pretty much stuck with crippling interest only mortgages.

Re: The Budget

Even the IFS have trashed Hammond's budget !!!

https://www.theguardian.com/politics...he-thumbs-down

Re: The Budget

Not all people who have a buy to let have a mortgage.
Lots of people invested their pension pot in a BTL in order to supplement their pension .

Re: The Budget

I agree .
Savers don't win anything .
Their savings erode with inflation and there is no where to go it would seem.
The large banks are a disgrace they have passed on nothing to their savers.

Re: The Budget

If house prices fall then the investment gain falls. Then there is still Capital gains tax on the gain if it's over £11.7k or £23.4k for married couples. They did reduce CGT rates on privately owned buy to lets to 10% lower and 20% higher rate last year. But they have changed some rules on residence relief and are closing CGT relief loopholes for those who have set their buy to let up as a company, although that won't hit for a few years.

So if house prices fall you lose out on buy to let whether you have a mortgage or not.

Re: The Budget

The only consolation we have is it would be worse under Labour

Re: The Budget

Only if you sell.
If you haven't had much gain you won't pay CGT.

Re: The Budget

Gains are realised when sold usually. For those who do have a mortgage and want to move the property to a company structure then from what I've seen there may be a gain chrystalised when the transfer is made so CGT could be due without an actual sale. I think the same applies if you sign away the property to a family member or trust.

If you have no gain then you have little return on your investment. If you had no mortgage and just rental income on which you paid tax then it's worthwhile holding onto it for the income. But in general there is less money to be made in holding buy to let property, particularly in future and particularly if you have a mortgage.

Re: The Budget

His budget could have been much worse. I didn't think it was good or bad really. Of course I object to the billions being put aside for Brexit.