Can anyone tell me the benefits of investing in a 'buy to let' mortgage as opposed to putting the money elsewhere. There seems to be a lot of hype about people making money on these investments. I would be grateful if anyone could give me some info. on this.
Some people have made a lot of money out of buying to let. Just as 3-4 years ago some people made a lot of money from dot.com shares. However those who jumped on the bandwagon too late lost a lot of money.
I agree, but I am intrigued by the question and wonder if you have answered the question that was asked. The OP is thinking of investing in a 'buy to let MORTGAGE', which seems to me that he is looking to lend some dosh to somebody to enable them to buy a house to let out, and the OP will be granted a mortgage over the subject property. Unlikely that this is what he means I know, but that is what he has actually asked.
On the other hand Ray may not know the terminology and without basic knowledge he should not proceed.
Not necessarily. He could "invest" in a BTLM in the sense of making overpayments on an existing one, which would accrue virtual capital by paying down debt, in effect earning interest at the loan rate, which for BTL is generally higher than for owner occupiers.
The snag of course is that each pound of loan interest saved is a pound of rental income which'll be taxed, so in effect, for a SRTP, the interest on the "investment" is taxed at 22% as opposed to 20%. But it still beats investing in a normal deposit account because the rate is apt to be higher.
No doubt that wasn't what he meant either.
To many people getting a house and getting [or rather giving] a mortgage are so inextricably linked that they become synonymous, so I reckon he meant investing in BTL per se.
I'm sure we do, if I can figure out what it is you mean. What's a "spell pedantism"? Might you mean a "spell of pedantry"?
I suppose she's as good a scapegoat as anyone. I regret (perhaps I shouldn't) never having seen her in action in any of those watch dog programs. Going by her Weakest Link stuff, they must have been difficult to take seriously.
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