The NEW 95% Mortgages – is It Help-To-Buy? (2021 Changes)
Hi Samuel Leeds here,
Today I am talking about the new 95% mortgages that the goverment announced in the 2021 new financial budget.
Yes I have been a critic of the Help-To -Buy for the last few years and even don't videos announcing I think it is a big sham and it's to help the Rich get Richer and it actually makes the poor get poorer.
But now it sounds like the government have been listening – This new 95% mortgage Help-To-Buy is completely different from all the previous “Help-To-Buy Schemes' that existed.
In the previous Help-To-Buy scheme it said you could borrow 95% percent to buy houses but it had to be a new build house. Now b buying a new build house is like anything you get new it definitely comes at a premium. So what was happening, was people were buying brand new houses on 95% mortgages and the value was dipping and they were being left in negative equity. So the real winner was not the buyer but the seller. This was one of the main reasons I was against the Help-To-Buy schemes despite me being a developer myself.
Now the government has announced the Help-To-Buy scheme is going to be for any property which in my opinion is a game changer. The second game changer towards the new scheme is no longer do you have to be a first time buyer. Again this is absolutely massive news! You can now apply for a 95% mortgage even if you are not a first time buyer but you do need to live in the house as this scheme is not for property investors this is for people to buy themselves a house to live in. It is capped on a purchase price of up top £600k so for a house in London this may not be applicable and I also have to say these Help-To-Buy schemes are for people who are decent earners.
So if you have a small deposit and are struggling to save but have decent income then this could be for you and will help you get on the property ladder.
NO SAVINGS and LOW EARNINGS then you will properly not get approved for this Help-To-Buy scheme.
So many people have already rushed to get 95% mortgages that some of the lenders have already pulled the plug on these help-to-buy schemes.
But if you have got some savings and have a decent income then for the first time I would say do use this Help-To-Buy scheme. This gets a thumbs up from me Mr Samuel Leeds.
The most exciting part is that the fact that the government are doing this means that they don't think house prices will be going down anytime soon. To explain what I mean is – The government are backing loans up to 95% and the banks are lending the money so therefore the must not be expecting house prices to stop going up and I concur with that.
So to all those property investors that are saying ‘I think I will wait and see what property prices do' STOP waiting as now is the time to start buying.
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