Good time to buy

Was speaking to mortgage advisor during the week,

18% worst case scenario affordability checks seems to be the way it is going for some of the lenders, that sort of rate was never mentioned when I last bought 4 years ago.
 

Muck Spreader

Member
Livestock Farmer
Location
Limousin
That's what one of the lenders conditions we looked at was, have to be able to afford the mortgage repayments at 18%.

I'm leaning towards Natwest, it was a worse case scenario 8% affordability check, which was eye watering enough.
Blimey, my first mortgage was at 8% and it went briefly to something like 17 or 18% in the early 90's, not something I would wish to repeat.
 
Mix of property and pension. Make sure to use different pension providers to spread your risk. Property should be a holiday let. You can write off the interest payments refurbishment costs etc against tax. Can't do that with BTL.
I know of an agency in Edinburgh that does the whole nine yards as in provide the tenants and cleaners etc. That is the most tax efficient way to invest in property.
 
Please explain. I have one pension provider (Fidelity) who has invested across a wide range of funds. Not sure I’d want the headache of more than one provider.
Being of the same generation you can surely remember the failures of various insurance/assurance companies. I have the same as you as in a spread across funds but also have a spread of providers. Had a company scheme then started four more separate schemes Transferred out of the two poorest performers so now have 3 providers in various funds.
 
Keeping it short, thinking about buying a buy to let property, waiting to see what's in the budget but the 5% deposit mortgage and government backed thats rumoured seems good, I will be classed as a first time buyer as have never bought a house before, as my house belongs to the business. So does the tff collective think it's a good time to buy ? Money's cheap to borrow and not really wanting to put stuff in a pension that could be worthless by the time I retire !
Have you checked this?

I was told if I had any control (partner etc.) in the business, then not first time buyer
 

Pasty

Member
Location
Devon
I think avoid pensions at the mo. Rishi is already looking to do a Gordon Brown style raid. Plus tax raises on the self employed.
 

Highland Mule

Member
Livestock Farmer
I think avoid pensions at the mo. Rishi is already looking to do a Gordon Brown style raid. Plus tax raises on the self employed.

So what would you do with a spare ££k in your company then? If it’s still there at my year end I get hit with corp tax, which may well be going up after 30/3; if I take it as dividend it costs me a chunk of tax, plus corp tax; if we spend it on toys it’s lost for ever. Putting it into a pension fund seems quite sensible, with the growth rates we’ve seen recently.
 

Pasty

Member
Location
Devon
So what would you do with a spare ££k in your company then? If it’s still there at my year end I get hit with corp tax, which may well be going up after 30/3; if I take it as dividend it costs me a chunk of tax, plus corp tax; if we spend it on toys it’s lost for ever. Putting it into a pension fund seems quite sensible, with the growth rates we’ve seen recently.
The growth rates you have seen are due to massive money printing which makes your money less valuable. Your buying power less.
 

Pasty

Member
Location
Devon
Yes, agreed - but I’m still beating inflation, and if I leave it in the bank I won’t be.
No, and that's the whole false emergency fund nonsense. You are leaving money to rot. Better have a credit line should an emergency happen. I have a credit card I never use and its really just for when my debit card fails for some random reason and I need to fill up the truck to get home etc. Costs me nothing and the cash is better invested elsewhere.
 
ERM exit, September 1992, i was paying 13% interest,
Remember it well, we signed for some land on black Wednesday.
Dad came home from market rather worried that he’d heard interest rates had jumped from 10 to 13%, the radio was on in the kitchen and they announced interest rates had risen again to 15%, we sat there in worry, not knowing where this was going to end.

By the end of the day the chancellor had pulled us out of the ERM and base rate was back to 10%, we were paying a couple of percent over base and that seemed quite manageable.
 

Pasty

Member
Location
Devon
Remember it well, we signed for some land on black Wednesday.
Dad came home from market rather worried that he’d heard interest rates had jumped from 10 to 13%, the radio was on in the kitchen and they announced interest rates had risen again to 15%, we sat there in worry, not knowing where this was going to end.

By the end of the day the chancellor had pulled us out of the ERM and base rate was back to 10%, we were paying a couple of percent over base and that seemed quite manageable.
I never really understood why Norman got such a bashing for that. It was the only thing to do.
 

Landrover

Member
Have you checked this?

I was told if I had any control (partner etc.) in the business, then not first time buyer
After speaking to my accountant this morning it looks as this is the case, but my wife isn't ! So there is ways around it ! But from what I understand there is going to be quite strict criteria for the new first time buyers scheme that is going to be announced, I will have to wait for clarification tho
 

SFI - What % were you taking out of production?

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Red Tractor drops launch of green farming scheme amid anger from farmers

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As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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