Q. Why work hard? A. To get money!
Right! And then give up to 40% of the interest on your money to the tax man?
That's right. If you have a conventional mortgage, and have money saved as well, you will be taxed on the interest at
your basic tax rate. For some people thats 20%. For many others thats 40%.
You can do better than that! You know you need to get your money working for you.
There is a way round this. Think about it. Why should you pay tax on the interest on your capital when you are
already paying tax on your salary. You have a debt - your mortgage, so why not put your capital into that debt and
beat the tax man? You reduce your debt which means you will pay your mortgage off earlier if you keep paying the
same amount. Much earlier, I mean you could pay it of 7 years earlier saving you many thousands of pounds.
equity in you property, you can just write out a cheque without asking any body. You can use your one account to
fund the deposit on your investment. You will use another lender to borrow up to 85% to leverage your investment.
Whatever you do, if you own property, you should consider getting a flexible current account mortgage. If you don't
you could be wasting £1000's in tax, not to mention the extra interest over the years.
I recommend the One Account because I had one for several years and it helped set me on the road to financial
freedom. Just being able to write out a cheque for £20k+, provided it was within my facility was an amazingly useful
feature. And always knowing that every pound in that account was helping me pay off my mortgage was very
reassuring.
Have a look at the one account site. They've got loads of facts and figures to get you motivated.
The One Account