Taking extra dividends to buy properry

[LondonManc]

in a similar situation to OP here

in the middle of a new purchase was planning on putting down 20% and using remaining savings to add some value to the property with extensions etc, thought i would need to draw additional dividends to cover some of work

accountant advised it was probably better to only put down 5% / 10% and retaine as much cash as possible, then look for a new mortgage deal in 2 years to bring monthly payments down to desired levels

Each to their own, but the more equity I have in a home the comfier I feel. You'll also get better deals with at least 15% down.

[Danglekt]

Similar situation here.

I am already over the threshold so I'm gonna rip it out this tax year and prepare myself for the pain of a large tax bill as a result - but better than paying an extra 7.5% next year for the same amount.

[jamesbrown]

Just remember that, if it's a one-off dividend at the higher rate, you can have any payment on account reduced to zero for the next tax year, but be aware of the consequences of having a liability that is earning interest if it turns out not to be a one-off. If you don't reduce the payment on account, you'll be in for an even bigger shock...

[filthy1980]

Each to their own, but the more equity I have in a home the comfier I feel. You'll also get better deals with at least 15% down.

i'm with you on a highest % equity as possible

if it works out i can search for a new deal in two years with increased LTV, and get a decent rate (fingers crossed touch wood etc etc)

[BrilloPad]

Take all the dividends you can. Property is a one-way bet. It can only go up.

[MrMarkyMark]

Take all the dividends you can. Property is a one-way bet. It can only go up.

I've said it once, I'll say it again....

You can't lose, fill your firkin boots, while you can, time is running out!

[topper]

Take all the dividends you can. Property is a one-way bet. It can only go up.

What a ridiculous statement......maybe long term you could argue that on average, but depending on your circumstances this is wholly inaccurate.

Speaking from experience after a split from my missus right in the middle of the house price crash.

[MrMarkyMark]

What a ridiculous statement......maybe long term you could argue that on average, but depending on your circumstances this is wholly inaccurate.

You, sir, obviously, do not read the right papers.

They are going to go up, forever

[Danglekt]

Just remember that, if it's a one-off dividend at the higher rate, you can have any payment on account reduced to zero for the next tax year, but be aware of the consequences of having a liability that is earning interest if it turns out not to be a one-off. If you don't reduce the payment on account, you'll be in for an even bigger shock...

Sorry is that to me, or about some form of loan?

I'm taking it as dividends and have no idea what most of your sentance is about?

[TheFaQQer]

Sorry is that to me, or about some form of loan?

I'm taking it as dividends and have no idea what most of your sentance is about?

If you have tax to pay, HMRC may assume that this is a regular thing and demand advance payment for the following year. Rather than pay this, you can reduce that payment demand, if you think that you won't need to pay tax.

The danger is that if you reduce it to £0 and you then owe tax, HMRC will charge you interest for not paying early.