Are you excited about this 95% Mortgage Guarantee Scheme? What questions do you have for us? Any concerns? Comment below :)
@freedomofspeech7593
3 жыл бұрын
Can you buy a council or housing association property?
@emem8577
3 жыл бұрын
@@freedomofspeech7593 you don't need a deposit for local authority or RSL property.
@cunnyfred9562
3 жыл бұрын
It could drive UP house prices in the UK, even though most banks are reluctant to guarantee a mortgage for certain properties.
@ravisoni922
3 жыл бұрын
1) Is this scheme available to non British Citizen who have permanently employment in UK and due to get UK citizenship soon? 2) what interested rates are available for this 95% LTV scheme? 3) is it worth putting a 5% deposit even though you can afford to put 20%-25% deposit? What are pros and cons of putting 5% deposit?
@dreamrat8
3 жыл бұрын
Some people are going to get fried when interest rates go up on 5% deposit
@jameslynch6657
3 жыл бұрын
I do not have the risk tolerance to consider a 95% mortgage. People have short memories about what can happen with the housing market- 2008 as an example... being 15% in negative equity on a £600k house is scary! Furthermore, government schemes like this just increase house prices... not sustainable
@TheHumblePenny
3 жыл бұрын
You're spot on on all counts. Although the government guarantee helps, the reality of implied price rises cannot be avoided.
@jax7038
3 жыл бұрын
True ,but there are too many young people who cant afford to save 60.000/20.000 and shared ownership is just something who makes you jump off a bridge. If you are planning to sell do not get involved but if you buy to keep I believe its a good scheme.
@zaratighe3075
3 жыл бұрын
We are excited about this scheme. My husband and I are good earners and have secure jobs but we had our children young (early 20's) so saving has always been hard and we haven't had the luxury of moving in with parents etc. We've been saving for 10% for a while but this will really take the pressure off and hopefully our boys will finally have their own room! Also we will hopefully stay in the home for the long run meaning negative equity etc shouldnt affect us too badly.
@TheHumblePenny
3 жыл бұрын
Hi Zara, sounds like this is absolutely ideal for you being high earners. Good luck and please keep us updated :)
@chiomaonuoha7723
2 жыл бұрын
I have binge watched all your videos especially on house purchase. You are doing an amazing job I must say. Well done!
@TheHumblePenny
2 жыл бұрын
Chioma, dalu! 😊🙏🏾
@laylabegum9304
3 жыл бұрын
OMG. The best news of this week. Great for those struggling with deposits. So happy for those we want to get in the property ladder. Thank you both.
@TheHumblePenny
3 жыл бұрын
You're most welcome :). How long have you been trying to get on the property ladder?
@gameplayerjames
3 жыл бұрын
As a single parent it doesn't help me... I have the deposit but not the affordability. And this will likely just drive prices up making it even harder!
@TheHumblePenny
3 жыл бұрын
Oh wow, sorry to read this. Can you please share what area you are hoping to buy a property in?
@gameplayerjames
3 жыл бұрын
@@TheHumblePenny I'm in the North West... Specifically Bolton so not even an expensive area compared to many parts of the country.
@gameplayerjames
3 жыл бұрын
Oh really, why is that then? 🤔
@beyondsims
2 жыл бұрын
Thanks so much for this really clear explanation of the pros, cons and what the 95% mortgage guarantee scheme means. Hoping that it will mean I can get onto the property ladder sooner, before the scheme closes.
@TheHumblePenny
2 жыл бұрын
Much appreciated message 😊🙏🏾
@BouQuiBQ
3 жыл бұрын
Really enjoyed this video. You guys broke it down in simple terms. Thank you.
@TheHumblePenny
3 жыл бұрын
Much appreciated :)
@ThisisDaniel
3 жыл бұрын
During the 2008 recession, a financial advisor came to speak to newly redundant colleagues (and others interested) on managing their severance packages / navigating to turbulent financial market. I'll never forget the off-the-record advice given, which was to *abstain* from embarking on a mortgage unless you were willing to commit 25% of the property value. Whilst this was harsh and sobering advice, their words resonated. I'd witnessed people on variable mortgages pay up to 3 x their monthly commitment when inflation changed, causing some to resell and lose their homes. It didn't make me risk averse, however I did reflect on the importance of delayed gratification - i.e. if you can't afford something *don't buy it* !
@TheHumblePenny
3 жыл бұрын
Words of wisdom, Daniel! 😀. Watch out for our video later today where we look at affordability for anyone embarking on a 5% deposit mortgage.
@ThisisDaniel
3 жыл бұрын
@@TheHumblePenny sounds like a good idea to present an impartial perspective.
@betteryouin2418
3 жыл бұрын
Great breakdown of this scheme. Not excited because I already own a residential property, but could be a great option for some. A few of those cons are something to seriously consider, especially if you may wish to move onto another property in the near future
@TheHumblePenny
3 жыл бұрын
Have you considered moving and keeping the current property that you have?
@Bk-qz8fl
2 жыл бұрын
Thanks so much guys, I couldn’t get my head around the scheme until now!
@TheHumblePenny
2 жыл бұрын
You're most welcome 😊
@ogegbuna-okafor7669
3 жыл бұрын
Like the way you broke down the pros and cons!
@TheHumblePenny
3 жыл бұрын
Thanks for watching 😊
@Afrodivas1
3 жыл бұрын
Thank you guys, amazing video as a first time buyer that’s currently viewing properties I needed to hear this.
@TheHumblePenny
3 жыл бұрын
Much appreciated, Abi. Please share with others :)
@oluwaseunoluwaranti7263
3 жыл бұрын
Thanks for the video guys! I think this is better than the previous help to buy and will probably take advantage when it starts.
@thewealthwarren6940
3 жыл бұрын
Great scheme- especially like that its available on not just new build houses!
@TheHumblePenny
3 жыл бұрын
Yup! Absolutely. Interesting to see how it all plays out in reality once it goes live.
@Indowaindowa
3 жыл бұрын
Great break down once again. Thank you Humble Penny,
@TheHumblePenny
3 жыл бұрын
You're most welcome :). Look out for our video later today about affordability.
@jax7038
3 жыл бұрын
Nice thanx for the info. Can you explain what a good salary is?
@kemiwoods
3 жыл бұрын
I think this would benefit us? We would like to buy our council property and can use our discount as a deposit. We are here for the long term so possibly can afford to ride out any storms. Need to crunch the numbers to see if this is better than help to buy.
@TheHumblePenny
3 жыл бұрын
Hi Kemi, you're thinking of this the right way (long term). Please keep us posted if you do take up the scheme. All the best! :)
@kapzvara5732
3 жыл бұрын
Great video thanks for this guys.
@TheHumblePenny
3 жыл бұрын
You're most welcome :)
@nj5293
3 жыл бұрын
Brilliant video, keep up the great content. Mary is looking beautiful as always xxx
@TheHumblePenny
3 жыл бұрын
Much appreciated and thank you so much 😊 Mary x
@angelintgaming
3 жыл бұрын
you guys are amazing well done. this was really insightful
@TheHumblePenny
3 жыл бұрын
Thanks so much, bro! 😊🙏🏽
@shanaceII
3 жыл бұрын
I was excited but finding out that you can't buy to let is a bit of a deal breaker. I live & work in London, I can't afford a property here, but not wanting to uproot. I'm looking outside the city for passive income opportunity. And the thought of paying 95-100% mortgage in London would be daunting when you have managed to stay debt free all this time.
@TheHumblePenny
3 жыл бұрын
We hear you. Nothing says that you can't buy and move to a cheaper area outside London for residential purposes and if you don't like it, rent it out by asking the bank for a "Consent To Let" and then move back to London nearer work. This way you still end up with the same results potentially. Thoughts? 🤔. Obviously only do this if you really want a residential property of your own. The suggestion above is in the worst case scenario.
@shanaceII
3 жыл бұрын
@@TheHumblePenny I wasn't aware of a "consent to let" as property is all new to me. That could be an option for me to consider. I'm currently saving with a LISA so assessing all options. Thanks for the info.
@TheHumblePenny
3 жыл бұрын
You're welcome! Do please keep us posted.
@fuffyduffy
3 жыл бұрын
Great for those with good salary but on time constraint to get either first house or larger house eg growing family, moving job to more expensive area etc. and staying there long term!
@TheHumblePenny
3 жыл бұрын
Very good point about staying there long term.
@trzagor2769
3 жыл бұрын
Thanks for that concise breakdown!!
@TheHumblePenny
3 жыл бұрын
Much appreciated! :)
@trzagor2769
3 жыл бұрын
@@TheHumblePenny You are doing a good job!
@jbrickwork
3 жыл бұрын
Guys thanks for your help much appreciated
@TheHumblePenny
3 жыл бұрын
👊🏾
@xoxstarxox7779
3 жыл бұрын
I saved up 10% and now they release this scheme 😩 I haven’t been drawn to any of the other schemes such as help to buy and shared ownership but this 95% mortgage is great for those in a decent salary role and even better that is doesn’t need to be a new build. Hope it helps and motivates the next up and coming home owners.
@TheHumblePenny
3 жыл бұрын
You're definitely in a better position putting up a 10% deposit. We wish you well with your purchase :)
@Neddie2k
3 жыл бұрын
I think we all have to know what the interest rate is before we start getting excited. At today's interest rate, I wouldn't buy a house with less than a 15% deposit.
@Ruthlesspast
3 жыл бұрын
Great video guys, so many other resources jumped to create a video/ article when there was a lot of ambiguity. Personally, I hope people use this scheme to buy fixer uppers... to hedge against the likelihood of negative equity.
@TheHumblePenny
3 жыл бұрын
Hi Zeinab, thank you :) Please elaborate on your point about buying a fixer upper and hedging? So that more people can understand how you see things :)
@Ruthlesspast
3 жыл бұрын
@@TheHumblePenny ok, here’s my opinion - if the market value of the property goes down but there is space to increase the value of the property by adding an extension, another bedroom etc. there might be the possibility to do the work and net out the market deprivation with the value added. funds or financing will be needed... so it still has its challenges... but it’s gives the homeowner options besides just waiting for the value of the property to go back up.
@TheHumblePenny
3 жыл бұрын
Agree! Plus buying a fixer upper will mostly likely have been bought below market value 😊
@tatendam4489
2 жыл бұрын
If you find a property that you like with and you plan to make it your family home (a home you are planning on living in for the longer term) then get on to the 95% mortgage. There are many pros than cons especially if you are currently paying rent (dead) money. Based on the modelling I did, it's better to jump onto a 95% mortgage than to continue paying rent especially if you live in London
@amayaraymond4486
3 жыл бұрын
Excited for this video
@TheHumblePenny
3 жыл бұрын
;). Hope you enjoyed it
@annajones9701
3 жыл бұрын
Problem is your mortgage is going to be super high as little down payment
@talk2s5061X
3 жыл бұрын
Thanks for the vid, what interest rates can u see the banks offering on these products?
@dennismoses7402
3 жыл бұрын
Thanks for the information I really love this. My question is with this new scheme available does that means that the help to buy equity loan no longer exist?
@alanomogbai184
3 жыл бұрын
Very helpful
@TheHumblePenny
3 жыл бұрын
Thank you, Alan!
@meninofernandes4610
2 жыл бұрын
Thanks
@amilaperera85
3 жыл бұрын
Thank you 🙏
@TheHumblePenny
3 жыл бұрын
You're welcome :)
@luegardener5921
5 ай бұрын
Hi there is this still available as i will come back home to live in a few months? Also how long would i need to live in it before i can rent it out and/or can i rent out rooms too? Thanks!
@laurannek
2 жыл бұрын
Why am I finding out this today? Thank you for your video guys! I moved in the UK 4 months ago, and was stressing so much about how the properties in the UK are so expensive! had a question though! Does this scheme applies to undervalued houses that I would like to refurb to my liking?
@toyinking2480
3 жыл бұрын
Can this scheme be used in tandem with the shared ownership scheme?
@fabiocarreirafilho5045
3 жыл бұрын
What’s the best way to check my affordability ?
@glenmarshall1948
3 жыл бұрын
Great video! Thanks guys. So that means you can't let the property out right? Even after some time living in it? What about if you have a 2 bed... Could you rent the second room out? Cheers
@TheHumblePenny
3 жыл бұрын
Hi Glen, thank you! :) We believe that you can rent your property out after buying it for residential purposes subject to agreeing a "Consent To Let" with your mortgage provider. You can also have a lodger if you have a 2 bed.
@glenmarshall1948
3 жыл бұрын
@@TheHumblePenny Thank you so much 😊 keep up the great work please
@ellea2541
3 жыл бұрын
Your videos are always so useful and straightforward - thank you 🙏🏾
@TheHumblePenny
3 жыл бұрын
Thanks so much, Elle! :)
@deannskin
3 жыл бұрын
This is exciting! I was wondering whether you could help me with a query. As people aren’t allowed to invest in properties as a buy to let under this new scheme, do you know if they will allow you to make the property a buy to let after I’ve lived in it for say 6 months?
@TheHumblePenny
3 жыл бұрын
Very good question, Deanna. As far as we're aware, there is no reason why you can't. Many people buy homes for residential reasons and their circumstances change. So yes, we believe that you can do that and ask your bank for a "Consent To Let". BUT - This will depend on the terms of the banks. We'll know more once the scheme goes live in April as mortgage companies might have special terms relating to this, although I don't see that happening. Note also that it would be harder to do what you suggested if you're on a 5 year fixed rate, for example. Make sense? In any case, please seek further advice naturally before making any decisions.
@deannskin
3 жыл бұрын
Thanks so much for your response. This is so useful. Love your videos ❤️
@TheHumblePenny
3 жыл бұрын
Much appreciated 😊🙏🏽
@kabadi100
3 жыл бұрын
After the initial 5 year fixed interest period, when you go to remortgage, can you change the mortgage type to a buy to let?
@TheHumblePenny
3 жыл бұрын
We believe you can :)
@prworswick
2 жыл бұрын
Do you know whether or not you can use a cash life time ISA to as a deposit towards the (help to buy) 5% deposit? i've been seen searching everywhere for info on this but get no where.
@Tomstheory
3 жыл бұрын
So with this new scheme, would I then be able to lend more money for my mortgage ?
@anon4518
3 жыл бұрын
Thanks for the video. Can you remortgage on a fully paid off property .
@TheHumblePenny
3 жыл бұрын
You can't "remortgage" it per se. But you can borrow against it if you really needed to. Make sense?
@anon4518
3 жыл бұрын
@@TheHumblePenny makes sense, thanks. Do you know the percentage you could possibly borrow against the house?
@freedomofspeech7593
3 жыл бұрын
Can you buy a housing association property or council property?
@TheHumblePenny
3 жыл бұрын
I need to triple check this and revert back.
@freedomofspeech7593
3 жыл бұрын
@@TheHumblePenny whoever wrote the budget probably didn't even consider it.
@MrRoyck10
3 жыл бұрын
Whilst the 95% mortgage may cause a temporary property boom in the short term, government is trying to help the post COVID economic recovery, government is also giving stamp duty holidays. However I personally don’t like the sound of spending the rest of my life paying almost 100% mortgage, I’d rather be mortgage free, this is another way to further entrap millennials who owe students loan, a 95% mortgage and a retirement age of 67. Now that is modern slavery!
@TheHumblePenny
3 жыл бұрын
We hear you 100%! It's such a delicate balance really because on one hand, people want to get on the property ladder, but on the other hand, they really don't want to be dragged down by debt driven by over inflated assets. I don't envy anyone starting out now. It's difficult. At least this scheme gives them a foot in the door, BUT one needs a strategy for getting rid of that debt. Alternatively, more people with decent incomes should move to cheaper areas and buy. That way it's win win with less borrowing too.
@user-xn2cf4xn2r
3 жыл бұрын
I dunno! I think it’s super interesting and sooo TIMELY given that I just started my job and wealth journey. It enables me to get a house in HALF the time I was planning (1.5 years!)
@joefromnorwich
3 жыл бұрын
Sounds dangerous though. Loads of skint people can get mortgages... If you cant save a deposit then your probably not in a financial position to take on the responsibility of a mortgage and the associated costs of home ownership.
@TheHumblePenny
3 жыл бұрын
Well... If one is skint, then they won't make it past the Affordability Criteria :)
@joefromnorwich
3 жыл бұрын
@@TheHumblePenny that's true to be fair.
@Master1906
3 жыл бұрын
If you have a high salary already surely it isn’t that much more effort to cough up 10% deposit rather than 5%?
@TheHumblePenny
3 жыл бұрын
Well... Yes and No :). But I get your point. Putting 10% in is less risky too.
@somayasahara3088
3 жыл бұрын
Is there a specific income for a couple that you have to have ?
@TheHumblePenny
3 жыл бұрын
Watch our video going LIVE tomorrow :). We cover this topic
@Trupak786
3 жыл бұрын
Sounds like what the US did in the early 2000s before the housing crisis that led to the big crash. In other words, stay away and save up for a deposit rather than use this scheme!
@TheHumblePenny
3 жыл бұрын
Definitely support the idea of having a healthier deposit where possible. But with the government guarantee, this scheme is less risky than what was being done in the 2000s.
@theresapack9858
3 жыл бұрын
I have a help to buy ISA account, will the benefits of this account still apply when going for this scheme? thanks! :) xx
@TheHumblePenny
3 жыл бұрын
If I've understood you correctly, Yes.
@MysteryDateWithaBook
3 жыл бұрын
Do you think a missed payment on a credit card (18 months ago) will mean I’m not eligible for this scheme? I’ve already been rejected a 10% deposit mortgage because of that 😔
@Neddie2k
3 жыл бұрын
I think you should work with a mortgage broker if there is a deal out there, they will find it.
@citrises
3 жыл бұрын
The interest rates will be over 3% for sure. Nasty. Not worth it at all. You will be paying back over £2 for every £1 borrowed. Think twice guys and think again.
@TheHumblePenny
3 жыл бұрын
When I took out my first ever mortgage, I was paying 5.99% for 5 years. Even if one paid just over 3% in interest to start, they can expect that to fall as LTVs get better by applying what we teach on this channel about overpayments etc. Higher rates for high LTV properties is quite normal. But one has to make the decision based on their personal circumstances and the Affordability Criteria is an important part of this process.
@citrises
3 жыл бұрын
@@TheHumblePenny Oh wow. I never knew they were that high. I have seen that remortgage rates have been a lot better, so hopefully, people can plan for the 2-5 years and hope for a better mortgage. Wow still so expensive.
@TheMightyRedmen_
3 жыл бұрын
Why is it virtually impossible to afford a house on your own lol? :/
@TheHumblePenny
3 жыл бұрын
Crazy, right!? Many reasons. One for sure is increasing prices and lagging wages...
@TheMightyRedmen_
3 жыл бұрын
@@TheHumblePenny yeah for myself im only 21, but for me to look at moving out on my own in the next few years it's going to be virtually impossible.. like you say the lagging wages, and the expenses will be too much..
@Neddie2k
3 жыл бұрын
I know @Luke , lending is set at 4 X earnings. How many houses are within that range on an average UK household salary?
@naomiwilliams8850
3 жыл бұрын
You can buy a home for £70k up north
@clenge53
3 жыл бұрын
Hi Guys is there any chance I can get your personal email to send you an afflicts proposal.Thanks
@TheHumblePenny
3 жыл бұрын
Please contact on our blog thehumblepenny.com . We get them on our phones and you can also get our email address there.
@giedrutep
3 жыл бұрын
It would be better if the lovely lady did most of the talking. Otherwise a very helpful and interesting video.
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