Reply to: pension options

[eek]

Looks like you were right and I was wrong.

Just tried and failed four times to meet the criteria to remortgage the property I just bought outright for BTL so I could build the second.

Penalised on

1) Time of ownership - Looks like you cannot buy a property outright and then try and remortgage it a month later - money laundering rules stop you. Got to wait a minimum of six months and then...

2) Even then one would not allow me to remortgage to build another property. The second didn't like contractors and a third didn't like contractors and also included your primary residence in it's affordability calculation of lending criteria which was 3.5 x Net Profit <= (Everything you owe on your primary mortgage, other mortgages and credit cards).

Nobody considered the rent versus mortgage interest on the property(like they used to).

And I can't even sign on!

So take the loan out on your main property. You don't need to have the loan against the btl property for you to deduct the loan interest against the rent.

[Mich the Tester]

I'm sure that if you give some significant part of your income to a banker or pension provider every month he'll be able to provide himself with a pension.

[SimonMac]

Looks like you were right and I was wrong.

Just tried and failed four times to meet the criteria to remortgage the property I just bought outright for BTL so I could build the second.

Penalised on

1) Time of ownership - Looks like you cannot buy a property outright and then try and remortgage it a month later - money laundering rules stop you. Got to wait a minimum of six months and then...

2) Even then one would not allow me to remortgage to build another property. The second didn't like contractors and a third didn't like contractors and also included your primary residence in it's affordability calculation of lending criteria which was 3.5 x Net Profit <= (Everything you owe on your primary mortgage, other mortgages and credit cards).

Nobody considered the rent versus mortgage interest on the property(like they used to).

And I can't even sign on!

#WorldsSmallestViolin

[MarillionFan]

I want to know who you bank with that will let you have two or three risky mortgages on the go at the same time, hang on I can probably guess its Northern Rock

Looks like you were right and I was wrong.

Just tried and failed four times to meet the criteria to remortgage the property I just bought outright for BTL so I could build the second.

Penalised on

1) Time of ownership - Looks like you cannot buy a property outright and then try and remortgage it a month later - money laundering rules stop you. Got to wait a minimum of six months and then...

2) Even then one would not allow me to remortgage to build another property. The second didn't like contractors and a third didn't like contractors and also included your primary residence in it's affordability calculation of lending criteria which was 3.5 x Net Profit <= (Everything you owe on your primary mortgage, other mortgages and credit cards).

Nobody considered the rent versus mortgage interest on the property(like they used to).

And I can't even sign on!

[Jeff Maginty]

..

[mrdonuts]

more pension gloom

more gloom

Newly retiring over 55s warned of income crisis on back of Bank's money printing | Mail Online

[Paddy]

how to build a pension of £25k a year when contracting is likely to have gone the way of the dodo in the next 18 months so need to build it with contractor earnings in this period

the stock market has been essentially flat for the last 12 years so is investing into a SIPP worthwhile?

do you instead try and start/fund a plan b

do you stash the cash and then try and move somewhere with a low cost of living upon retirement

get some BTL leverage and hope the arse doesnt fall out of the property market

whats the best option/mix or are there some options i have overlooked

Write a book titled “The secret of how to make a pension of £25k per year” and sell it on the Internet.

[ChimpMaster]

See, now that's a good return at 7%. So on my example, if you had a mortgage rate on your principal home of 1% then taking out the equity and buying another one for £105k would make sense. In fact, why not buy two at an LTV of 50% and take out a BTL mortgage at 5-6% for the other half.

Anyway that's my plan and that's why I've used my equity to go and buy some more BTL property.

Of course, if interest rates shoot up and there's a housing crash then I'm fecked. But that's the risk.

House price crashes are irrelevant if you ride them out. If interest rates go up, put up your rent.

[SimonMac]

Shhhhh! You don't tell your principle lender.

And you wonder why we think you are dodgy

[MarillionFan]

I want to know who you bank with that will let you have two or three risky mortgages on the go at the same time, hang on I can probably guess its Northern Rock

Shhhhh! You don't tell your principle lender.

[SimonMac]

See, now that's a good return at 7%. So on my example, if you had a mortgage rate on your principal home of 1% then taking out the equity and buying another one for £105k would make sense. In fact, why not buy two at an LTV of 50% and take out a BTL mortgage at 5-6% for the other half.

Anyway that's my plan and that's why I've used my equity to go and buy some more BTL property.

Of course, if interest rates shoot up and there's a housing crash then I'm fecked. But that's the risk.

I want to know who you bank with that will let you have two or three risky mortgages on the go at the same time, hang on I can probably guess its Northern Rock

[MarillionFan]

Last valuation was £105k, renting it out for £625 a month on a mortgage of £149 a month.

Now where is that smiley

See, now that's a good return at 7%. So on my example, if you had a mortgage rate on your principal home of 1% then taking out the equity and buying another one for £105k would make sense. In fact, why not buy two at an LTV of 50% and take out a BTL mortgage at 5-6% for the other half.

Anyway that's my plan and that's why I've used my equity to go and buy some more BTL property.

Of course, if interest rates shoot up and there's a housing crash then I'm fecked. But that's the risk.

[SimonMac]

Now bugger off permie boy.

How rude!

[SimonMac]

If you bought in the North, then it's probably only worth £35k now.

Last valuation was £105k, renting it out for £625 a month on a mortgage of £149 a month.

Now where is that smiley

[MarillionFan]

I bought mine for £47,000 but then again I bought mine before the boom

If you bought in the North, then it's probably only worth £35k now.