: high LTIs increase vulnerability The International Monetary Fund (IMF) has warned that the increase in high loan-to-income (LTI) mortgages, led by rising house prices, means that households are becoming "more vulnerable to income, interest rate, and house price shocks." It welcomes the Bank of England's decision to implement an LTI cap of 4.5 times a borrower's income and has called it "a step in the right direction", with analysis of other advanced economies finding that such macroprudential tools can be highly effective in dampening mortgage credit growth and mitigating financial stability risk. However, it goes on to say that, if such policies prove insufficient, "the Bank of England might want to consider an interest rate hike to tighten financial conditions".
10pc tax is deducted from dividends before the proceeds are passed on to you, and cannot be reclaimed
Divis come with tax already paid and the tax can not be claimed back even in an isa
But won't I have to pay tax on isa divis ?
Bravo! Well said, Sir!
Calm down. Sit back and relax, comfortable in the knowledge that these shares will be yielding 8.5% next year at current prices. Enjoy the massive dividends and treat yourself to a few glasses of your favourite Champagne on the ride up to 170p 2016. Who care about the price today- use it to buy more, we know where this is going.
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