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Neverwhere

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  1. Good to see that they're still struggling with details we'd worked out immediately after the Summer Budget!
  2. Neverwhere

    Tax Relief On Buy To Let Mortgage Interest.

    That's the one! At least you've confirmed that I wasn't imagining it, thanks Mr T
  3. Neverwhere

    Tax Relief On Buy To Let Mortgage Interest.

    I think you're right and that is exactly why I can't find it! It all ties up very neatly, with the reliance on debt making it near impossible to evade. Even for those BTL landlords that get themselves stuck scraping by on the SVR that will only represent a temporary reprieve, as at the end of their (normally shorter than a standard mortgage) term they will still have to sell to repay, if they can repay at all, and will flag themselves up to HMRC when they do.
  4. Neverwhere

    Tax Relief On Buy To Let Mortgage Interest.

    This is really the key thing, and while there are many other ways for HMRC to track down tax evading landlords it seems like allowing lenders to do it for them will be the most cost effective and comprehensive tactic. I'm sure we've seen evidence of this already - with BTL landlords complaining that they've been unable to refinance their BTL properties because they couldn't provide a tax return - but I can't quite remember which thread it was discussed on?
  5. Neverwhere

    Tax Relief On Buy To Let Mortgage Interest.

    The broker wasn't very clear themselves but I'm pretty certain they were just referring to landlords' ability to claim tax reliefs on the transfer of properties from individual to LLP to Ltd. AIUI the rules on this are simply that tax reliefs on the transfer are only available for those who aren't making the transfer to reduce their ongoing tax bills; and they involve giving some people the opportunity to keep hold of money that would otherwise legitimately be due as taxes rather than taking additional money away from anyone.
  6. Neverwhere

    Buy To Let Finance Watch

    I think that probably runs the other way and brokers are finding it difficult to get lenders to agree to lend to their clients (given loan-to-income/rent ratios) and so are having to shop around, as no doubt they'd much prefer to save on their own time and effort and only deal with a handful of lenders instead. It definitely seems like they are lending into the riskier end of things, given they're expanding their BTL lending whilst overall new BTL borrowing is down: And at the same time as accountants are apparently unwilling to sign off the various schemes - which may or may not require remortgaging - that BTLers are embarking on to try to avoid the recent and ongoing tax changes: Obviously P2P and the challenger banks are quite different, in terms of regulation, and so the banks should have capital buffers to help them cope with any defaults. Also, AIUI, at least some of them make use of Special Purpose Vehicles to hold their BTL books at arm's length. But it does seem like it could be an interesting area to watch. For one thing it could lead to a sudden drying up of available BTL products if their expansion into the BTL lending that the mainstream banks no longer appear to want turns out to have been a bad idea.
  7. Neverwhere

    Ireland: A Btl Case Study

    Irish rents continue to rise as tax reliefs for Irish landlords are phased back in: (Source: The RTB Rent Index Quarter 3 2018)
  8. Neverwhere

    A Goodbye To All That Buy To Let

    Continuing falls in new BTL borrowing, potentially an early indication that the next dwelling stock estimates will show a further reduction in the size of the PRS?
  9. Neverwhere

    Buy To Let Finance Watch

    Both of which look to be limited company buy-to-let, almost as if transferring the beneficial interest to the company means that the company then needs to be party to the financing arrangements...
  10. Neverwhere

    Climate breakdown and housing strategy

    FreeTrader had a great thread on current coastal erosion and house prices/sales:
  11. Neverwhere

    A Goodbye To All That Buy To Let

    I think that as Ah-so notes it's likely to improve their understanding of what's going on, rather than to pursue or support a specific policy. As they've started to collect borrower level data, and the PRA have been asking lenders to assess borrowers' portfolios and not just the individual property they're lending against, it makes sense that they would be looking to see whether this information provides any new insight into the behaviour of a sector (BTL) which the Bank has previously expressed concern about.
  12. Neverwhere

    A Goodbye To All That Buy To Let

    What do you think might explain the difference in relationship between LTV and distress at BTL loan level and at BTL borrower level? It seems like the method for assessing LTV at borrower level could conflate BTL borrowers who've experienced a slight drop in LTV across the board, BTL borrowers who've experienced a significant drop in LTV on a single rental property, and BTL borrowers who've experienced a significant drop in LTV on their own homes, all of whom might be expected to behave somewhat differently?
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