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JohnG

Why We Should All Go For Io Mortgages

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Well, we all know that 'financially sophisticated' people take the IO route for 'cash flow' reasons, but here's a thought which suggest that maybe everybody should do it.

We all know that repayment mortgages gradually increase the equity in your property until you reach the point where you do actually own it and are no longer renting it from your bank/ building society.

Unfortunately, this leads to a worthwhile estate when you pop your clogs, and attracts the attention of the Thief of Downing Street.

The practical upshot of this is that of the extra money that a repayment mortgage costs, a substantial percentage is effectively being earmarked for theft by that miserable Scottish tw Inheritance Tax when your estate gets settled.

Not 'new news', but indicative -

http://news.bbc.co.uk/1/hi/business/4675574.stm

So, instead of dutifully setting money aside to be extorted from your beneficiaries, why not go IO and redirect the 'saved cashflow' to contribute to the education of your children/ grandchildren, or save it towards deposits on houses for your children/ grandchildren?

What do you think folks?

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Well, we all know that 'financially sophisticated' people take the IO route for 'cash flow' reasons, but here's a thought which suggest that maybe everybody should do it.

We all know that repayment mortgages gradually increase the equity in your property until you reach the point where you do actually own it and are no longer renting it from your bank/ building society.

Unfortunately, this leads to a worthwhile estate when you pop your clogs, and attracts the attention of the Thief of Downing Street.

The practical upshot of this is that of the extra money that a repayment mortgage costs, a substantial percentage is effectively being earmarked for theft by that miserable Scottish tw Inheritance Tax when your estate gets settled.

Not 'new news', but indicative -

http://news.bbc.co.uk/1/hi/business/4675574.stm

So, instead of dutifully setting money aside to be extorted from your beneficiaries, why not go IO and redirect the 'saved cashflow' to contribute to the education of your children/ grandchildren, or save it towards deposits on houses for your children/ grandchildren?

What do you think folks?

Its a valid thought - if you dont own your house by the time you retire, and ensure all your other investments are hidden, then surely that smug scottish twit needs to pay you housing benefit with taxpayers money when you retire? (though personally I am hoping he will die long before that!)

It seems that any state pension and benefits will soon means-tested out by any personal provision & assets held ..

So why not ensure when it comes to retirement, you have nothing whatsoever visible?

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So, instead of dutifully setting money aside to be extorted from your beneficiaries, why not go IO and redirect the 'saved cashflow' to contribute to the education of your children/ grandchildren, or save it towards deposits on houses for your children/ grandchildren?

What do you think folks?

Um... What happens when you want to retire and you don't own any property? Unless you're very lucky your pension will be unlikely to keep a roof over your head, and housing benefit is unlikely to offer the standard of living you're used to.

It's an interesting concept though.

Basically it's like renting, but you get to keep any equity that the property accumulates. Of course, you're exposed to negative equity too, and currently an IO mortgage on properties where I live is as much as rent on identical properties, so maybe it's one for after the HPC. Then it'll be much cheaper than renting and will offer a much greater scope for accumulating equity.

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Wouldn't touch them.

There are other ways to avoid inheritance tax.

And The Miseable One is closing them down as fast as he can. Retrospectively, too, now he has the anti avoidance legislation in place.

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And The Miseable One is closing them down as fast as he can. Retrospectively, too, now he has the anti avoidance legislation in place.

why not sell everything you've got a couple of years before you retire, get the kids to stash it away for you, then plead poverty and get all the benefits you can ?

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why not sell everything you've got a couple of years before you retire, get the kids to stash it away for you, then plead poverty and get all the benefits you can ?

Good idea. If you feel like you've been shafted by the system then its going to be payback time.

Physical gold anyone?

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why not sell everything you've got a couple of years before you retire, get the kids to stash it away for you, then plead poverty and get all the benefits you can ?

Because then you are talking about a PET (Potentially Exempt Transfer) and Thieving Gordy could steal it from your kids if you die within 7 years, which is why you have to start giving it away as soon as you can.

In the Olden Days, Margaret Thatcher talked about 'cascading wealth through the generations'. These days it's more about 'give it to the children/grandchildren as soon as you can, before Gordon 'Thieving *******' Brown confiscates it.

Spot the correlation between Socialism and Tax Planning. :angry:

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Guest Bart of Darkness
though personally I am hoping he will die long before that!

5 years ago would be too soon.

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in the long term rents and property prices rise in line with wages (which exceed inflation for the country as a whole due to economic growth).

by buying on an IO mortgage you are effectively renting from the bank, but on the basis that your rent in determined by interest rates not wage inflation. long term wages will rise year after year, interest rates may rise for 3 or 4 year but not for ever. after 10 years (maximum) and for all time thereafter (you can remortgage to another IO at the end of 25 years) you will be paying less on the mortgage than you would have been renting.

house-buying is a very good way of buying into the wealth of the nation as a whole (that does not mean it should be done at the end of a boom period)

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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