Unfortunately, this deal is no longer available
TSB 2.09% Best 5 Year Fixed BTL Mortgage for landlords with 60% LTV Zero fee with Cashback
276° Expired

TSB 2.09% Best 5 Year Fixed BTL Mortgage for landlords with 60% LTV Zero fee with Cashback

50
Posted 14th Mar

This deal is expired. Here are some options that might interest you:

2.09% fixed until 30 June 2025 available direct and via broker / intermediaries

£250 cashback (for purchases only) paid directly to your conveyancer on completion if you've got a TSB current account and have £500 or more a month paid in to it.
For loans between £25,005 and £500,000.
No product fee

I’ve done some serious research this morning and found this to be super value.
Community Updates
TSB Bank Deals

Groups

Top comments
Might be worth waiting a few months before making any big financial decisions though.
50 Comments
For loan amounts less than 250k this hits the sweet spot without paying fees. Especially since these days you cannot offset finance costs on your tax return

40102222-HG3EV.jpg
Edited by: "bagga212" 14th Mar
You sure you can’t claim finance costs I thought you still can?
gov.uk/gov…rds

Landlords will be able to obtain relief as follows:

in 2017 to 2018 the deduction from property income (as is currently allowed) will be restricted to 75% of finance costs, with the remaining 25% being available as a basic rate tax reduction

in 2018 to 2019, 50% finance costs deduction and 50% given as a basic rate tax reduction

in 2019 to 2020, 25% finance costs deduction and 75% given as a basic rate tax reduction

from 2020 to 2021 all financing costs incurred by a landlord will be given as a basic rate tax reduction
Edited by: "bagga212" 14th Mar
Might be worth waiting a few months before making any big financial decisions though.
Just mortgaged a new BTL with virgin money on 5 years fixed for 1.59% and £500 cashback on completioin.
mattjaco14/03/2020 07:56

Just mortgaged a new BTL with virgin money on 5 years fixed for 1.59% and …Just mortgaged a new BTL with virgin money on 5 years fixed for 1.59% and £500 cashback on completioin.


Fees is likely £1995 otherwise share a link
Thanks my consent to let ends in 6 months so I need to decide to either move back in or convert to BTL
mattjaco14/03/2020 07:56

Just mortgaged a new BTL with virgin money on 5 years fixed for 1.59% and …Just mortgaged a new BTL with virgin money on 5 years fixed for 1.59% and £500 cashback on completioin.


Good luck with that.
M_z14/03/2020 07:36

Might be worth waiting a few months before making any big financial …Might be worth waiting a few months before making any big financial decisions though.


errrr not if your mortgage is running out and you are ending up on SVR. Also how low can the interest rate go from 0.25%
Are most BTL landlords not using limited companies? I take it this offer is not open to companies?
Punjabi.Geezer14/03/2020 09:22

Are most BTL landlords not using limited companies? I take it this offer …Are most BTL landlords not using limited companies? I take it this offer is not open to companies?


Thats called business buy to let...
Diffrent product entirely. Moving from BTL to commercial btl has lots of impact.
bagga21214/03/2020 08:25

errrr not if your mortgage is running out and you are ending up on SVR. …errrr not if your mortgage is running out and you are ending up on SVR. Also how low can the interest rate go from 0.25%


True. But that's a very specific case, generally waiting a few months before big financial decisions in a time of massive uncertainty is pretty uncontentious, is have thought?
Avatar
deleted2444191
eatmorefish14/03/2020 08:25

Good luck with that.


why good luck ? (serious question). He/She has already done it ??
manicmidlander14/03/2020 08:00

Thanks my consent to let ends in 6 months so I need to decide to either …Thanks my consent to let ends in 6 months so I need to decide to either move back in or convert to BTL


Bear in mind capital gains tax too - without going into the detailed rules, living in your property as opposed to letting it out can help reduce the bill a fair bit when you come to sell it
deleted244419114/03/2020 09:55

why good luck ? (serious question). He/She has already done it ??


Already got it signed and sealed - went through a company called Swann financial in Banbury - £250 fee for the setup.
bagga21214/03/2020 07:35

https://www.gov.uk/government/publications/restricting-finance-cost-relief-for-individual-landlords/restricting-finance-cost-relief-for-individual-landlordsLandlords will be able to obtain relief as follows:in 2017 to 2018 the deduction from property income (as is currently allowed) will be restricted to 75% of finance costs, with the remaining 25% being available as a basic rate tax reductionin 2018 to 2019, 50% finance costs deduction and 50% given as a basic rate tax reductionin 2019 to 2020, 25% finance costs deduction and 75% given as a basic rate tax reductionfrom 2020 to 2021 all financing costs incurred by a landlord will be given as a basic rate tax reduction


About time really, as owner occupiers don't get these tax incentives an have to compete with landlords.

And whilst in regards to CGT, unlike landlords owner occupiers get private residence relief, I just wonder how many so called 'highly leveraged' landlords understand that capital gains tax is supposed to be due on each disposal and this happens everytime they use the equity from a property to buy another. The amount of capital gains tax the treasury has missed from this over the last 25 years or so muct be staggeringly high. I wonder if they'll look at things retrospectively when inevitably lots of landlords start disposing of their assets.

You have to wonder too how many landlords there are out there who don't declare. There's so many that only have one property and have the business acumen of an ant, don't understand their legal responsibilities, do the bare minimum etc. HMRC should come down hard on most of them.
Edited by: "supermann" 14th Mar
Got this interest rate for 5 years with Barclays almost a year ago. Since I've done it, I came across lots better deals, including close to 1.5%. Our previous rate was 1.59%.

Perhaps the interest rates go up again, but IMO they should go down now. Anyway, for these with low payments like us, 1.5 or 2% will not make a huge difference even over 5 years.
sheffield78814/03/2020 10:43

Got this interest rate for 5 years with Barclays almost a year ago. Since …Got this interest rate for 5 years with Barclays almost a year ago. Since I've done it, I came across lots better deals, including close to 1.5%. Our previous rate was 1.59%. Perhaps the interest rates go up again, but IMO they should go down now. Anyway, for these with low payments like us, 1.5 or 2% will not make a huge difference even over 5 years.


I hope you could share a competing deal...
bagga21214/03/2020 11:05

I hope you could share a competing deal...


I didnt say this is a bad deal, or that I know a better one. I said I've got this deal a year ago and shortly after, lots better deals were available.
However, please ignore my comment, just realised this is for landlords and have no clue what is a good deal for them, perhaps this it is.
Edited by: "sheffield788" 14th Mar
From what I can see, post office have a better deal. 5 year fix, 1.96%, £495 fees, £500 cash back. 60% LTV btl. The lower rate will beat the £200 difference in cashback
Edited by: "donny1266" 14th Mar
bagga21214/03/2020 07:58

Fees is likely £1995 otherwise share a link


Yep fee for that is 1995
supermann14/03/2020 10:35

About time really, as owner occupiers don't get these tax incentives an …About time really, as owner occupiers don't get these tax incentives an have to compete with landlords.And whilst in regards to CGT, unlike landlords owner occupiers get private residence relief, I just wonder how many so called 'highly leveraged' landlords understand that capital gains tax is supposed to be due on each disposal and this happens everytime they use the equity from a property to buy another. The amount of capital gains tax the treasury has missed from this over the last 25 years or so muct be staggeringly high. I wonder if they'll look at things retrospectively when inevitably lots of landlords start disposing of their assets.You have to wonder too how many landlords there are out there who don't declare. There's so many that only have one property and have the business acumen of an ant, don't understand their legal responsibilities, do the bare minimum etc. HMRC should come down hard on most of them.


Yeah, I always wonder why people try to avoid giving a massive amount of their money to the government just because they 'demand it'
Stamp duty is a great example.
We demand a percentage of the house price when you buy a house.
Why? No specific reason, just give it to us.
fireman114/03/2020 13:08

Yeah, I always wonder why people try to avoid giving a massive amount of …Yeah, I always wonder why people try to avoid giving a massive amount of their money to the government just because they 'demand it'


With capital gains it's very reasonable to be charged on housing. Perhaps if it was charged on private residences, along with landlords actually being charged on each disposal, house prices wouldn't be so damn ridiculously out of kilter with inflation.

Maybe house prices should be included in the inflation figures, then maybe the government would do things to help keep the prices down, given they've basically being doing precisely the opposite with an all manner of hairbrained schems like Help to Buy etc.
Edited by: "supermann" 14th Mar
supermann14/03/2020 10:35

About time really, as owner occupiers don't get these tax incentives an …About time really, as owner occupiers don't get these tax incentives an have to compete with landlords.And whilst in regards to CGT, unlike landlords owner occupiers get private residence relief, I just wonder how many so called 'highly leveraged' landlords understand that capital gains tax is supposed to be due on each disposal and this happens everytime they use the equity from a property to buy another. The amount of capital gains tax the treasury has missed from this over the last 25 years or so muct be staggeringly high. I wonder if they'll look at things retrospectively when inevitably lots of landlords start disposing of their assets.You have to wonder too how many landlords there are out there who don't declare. There's so many that only have one property and have the business acumen of an ant, don't understand their legal responsibilities, do the bare minimum etc. HMRC should come down hard on most of them.


Highly leveraged landlords don't generally dispose so no cgt issue. Unless you mean property developers who buy, renovate, sell?
fireman114/03/2020 13:12

Stamp duty is a great example.We demand a percentage of the house price …Stamp duty is a great example.We demand a percentage of the house price when you buy a house.Why? No specific reason, just give it to us.


This is that the only reason I haven't transferred into a limited company.... but I am reconsidering.
I'm not sure this deal is that good. I'm sure I had a quote from platform for 1.93% no fees
rodman14/03/2020 13:30

Comment deleted


They look like residential mortgage rates. This is a buy to let mortgage which is more expensive.
fireman114/03/2020 13:12

Stamp duty is a great example.We demand a percentage of the house price …Stamp duty is a great example.We demand a percentage of the house price when you buy a house.Why? No specific reason, just give it to us.


Would the same not be true for all tax?
matthew8014/03/2020 14:06

I'm not sure this deal is that good. I'm sure I had a quote from platform …I'm not sure this deal is that good. I'm sure I had a quote from platform for 1.93% no fees


This is the best deal for me at 173k 60% ltv no fees
matthew8014/03/2020 14:08

They look like residential mortgage rates. This is a buy to let mortgage …They look like residential mortgage rates. This is a buy to let mortgage which is more expensive.


Oh yeah, my bad.
matthew8014/03/2020 14:06

I'm not sure this deal is that good. I'm sure I had a quote from platform …I'm not sure this deal is that good. I'm sure I had a quote from platform for 1.93% no fees


Platform are sometimes cheapest but I find their service awful. Tried asking for every document under the sun when I applied there. Took about 6 weeks with an application and far too worried about my employed income rather than the rent. Simple explanation that my employer has offices in Europe and U.K. doesn’t go well with their underwriters.
Fair enough. I've not used them but have them high on the list. I'm just mulling it over. I either need to remortgage now individually or move it to an spv and incur cgt and stamp duty and higher interest costs.
Edited by: "matthew80" 14th Mar
matthew8014/03/2020 14:04

Highly leveraged landlords don't generally dispose so no cgt issue. Unless …Highly leveraged landlords don't generally dispose so no cgt issue. Unless you mean property developers who buy, renovate, sell?


When they effectively withdraw equity from a property by remortgaging to buy another it's arguable they're disposing of an asset (gains) like the below.

Disposing of an asset includes:

  • selling it
  • giving it away as a gift, or transferring it to someone else
  • swapping it for something else
  • getting compensation for it - like an insurance payout if it’s been lost or destroyed
supermann15/03/2020 11:42

When they effectively withdraw equity from a property by remortgaging to …When they effectively withdraw equity from a property by remortgaging to buy another it's arguable they're disposing of an asset (gains) like the below.Disposing of an asset includes:selling itgiving it away as a gift, or transferring it to someone elseswapping it for something elsegetting compensation for it - like an insurance payout if it’s been lost or destroyed


Remortgaging is not a disposal. Swapping it means trading it like I'll give you my car for your car.
matthew8015/03/2020 12:13

Remortgaging is not a disposal. Swapping it means trading it like I'll …Remortgaging is not a disposal. Swapping it means trading it like I'll give you my car for your car.


Not if you are using the equity that you've gained, like if you still have a huge mortgage on the property so how can you then argue you're not swapping the equity for something else? It's clearly a disposal but granted HMRC are unlikely to take any action but you never know, they might retrospectively if they have the resources given the surge in landlords selling lately.

There must be lots of landlords in this position given how popular 100% mortgages were for a while.
Edited by: "supermann" 15th Mar
supermann15/03/2020 12:17

Not if you are using the equity that you've gained, like if you still have …Not if you are using the equity that you've gained, like if you still have a huge mortgage on the property so how can you then argue you're not swapping the equity for something else? It's clearly a disposal but granted HMRC are unlikely to take any action but you never know, they might retrospectively if they have the resources given the surge in landlords selling lately.There must be lots of landlords in this position given how popular 100% mortgages were for a while.


It's not a disposal. You are the 100% owner of the property it's just you have taken debt and used the property as security on the debt (mortgage).

The lender owns 0% and it will be solely be your name on the title deeds but the security means they have the right to repossess the property to sell and get their money back.
Edited by: "matthew80" 15th Mar
supermann15/03/2020 12:17

Not if you are using the equity that you've gained, like if you still have …Not if you are using the equity that you've gained, like if you still have a huge mortgage on the property so how can you then argue you're not swapping the equity for something else? It's clearly a disposal but granted HMRC are unlikely to take any action but you never know, they might retrospectively if they have the resources given the surge in landlords selling lately.There must be lots of landlords in this position given how popular 100% mortgages were for a while.



Irrespective of that(releasing equity), the CGT is applicable for the net profit(sold price minus the purchase price) at the time sale. So why do HMRC need to introduce an extra tax for releasing equity (which can result in double taxation)?

I understand your point that releasing equity (as tax free) to build up the portfolio of buying another house or used it for other investment purpose etc but I presume it’s going to be a complicated tax procedure(which already is)
Edited by: "AJAJ" 15th Mar
AJAJ15/03/2020 12:30

Irrespective of that(releasing equity), the CGT is applicable for the net …Irrespective of that(releasing equity), the CGT is applicable for the net profit(sold price minus the purchase price) at the time sale. So why do HMRC need to introduce an extra tax for releasing equity (which can result in double taxation)?I understand your point that releasing equity (as tax free) to build up the portfolio of buying another house or used it for other investment purpose etc but I presume it’s going to be a complicated tax procedure(which already is)


Remortgaging and releasing equity is not a sale.

Otherwise I've missed a massive trick as you should get a two year mortgage each time, revalue the property by something similar to the annual cgt allowance and never have to pay cgt when you dispose in 20 years time!

That is not what HMRC want.
# off topic
Post a comment
Avatar
@
    Text