First-time buyer mortgage 5.5x income (22% more!) | Help to Buy alternative | Helping Hand mortgage

Просмотров 14 тыс.

% 677

I discuss Nationwide's Helping Hand mortgage for first-time buyers, which is a viable alternative to the Help to Buy: Equity Loan scheme. It can be used to purchase existing homes, as well as new builds, and can increase the amount first-time buyers are able to borrow by 22%, by allowing homebuyers to borrow up to 5.5 times their salary, instead of usual maximum of 4.5. I cover the eligibility criteria, product availability and the potential impact on the UK housing market.
CONTACT DETAILS
Email: lemuelstudios@gmail.com
Instagram: @SelfInvested_UK
Twitter: @InvestedSelf
LINKS MENTIONED/USED
Nationwide Helping Hand mortgage - www.nationwide.co.uk/guides/news/all-news/2021/04/helping-hand-mortgage
95% Mortgage Guarantee Scheme - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-hE19TjU0D9E.html
How much can you afford with Help to Buy? - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-DT7C1HBAxII.html
OTHER PLAYLISTS
My Shared Ownership Experience (series) - ru-vid.com/group/PLUG_SDz9gLQKqInQrRbCC21S4pZpp4JrN
Shared Ownership - ru-vid.com/group/PLUG_SDz9gLQI3lKk_GIxi9Kgn_GeCaDDp
Help to Buy Equity Loan - ru-vid.com/group/PLUG_SDz9gLQJIBs_0uHERF90GRFLamKv_
CHAPTERS
Intro 00:00
Example 01:37
Eligibility Criteria 02:37
Availability 06:15
Who will this mortgage benefit 06:59
Key considerations 08:52
Outro 09:58
ABOUT ME
I'm Lemuel. I'm not a financial advisor. I'm not an expert. I'm just a regular guy that enjoys talking about how we can do better with money.
If you want to learn more about how you can do better with money, then subscribe to the channel and hit the notification bell so you get an alert whenever I upload a video.
DISCLAIMER
This video is not meant to address the specific circumstances of any particular individual. It is created for educational purposes only. You should not rely upon it as legal, financial or professional advice, or a substitute for it. Any product details mentioned in the video were correct at the time of filming. I do not accept any liability whatsoever for errors, omissions or misstatements contained therein. You should consult a suitably qualified professional if you require specific advice or information.

Опубликовано:

3 май 2021

Ссылка:

Скачать:

Готовим ссылку...

Добавить в:

Мой плейлист

Посмотреть позже

Комментарии : 86

@SelfInvested 3 года назад

CORRECTION At 06:35 I say £1bn is equal to 400 mortgages of £250k. It's actually equal to 4,000 mortgages of £250k - sorry!🤦The iPhone calculator only goes up to 100,000,000!! :/ A bit late and a different setting, but I hope you still enjoy the video! Let me know if you have any questions about this mortgage and I will try best to answer ;)

@TheWellnessAbbey 3 года назад

Woahhhhh- their definition of a 'first-time buyer' was totally unexpected! It's interesting that they've capped the amount they've put aside for this scheme. I guess they're not a charity, lol. Thanks for the useful video!

@SelfInvested 3 года назад

Always a pleasure, Rachel! Yeah, that was a surprise for me as well... Not sure why no one has mentioned it, it’s an important point. With the £1bn, I think it’s just about managing the risk...

@mzp3tite 3 года назад

THANK YOU SO MUCH!! As always, very informative!!! ❤

@SelfInvested 3 года назад

You are very welcome! Glad you found it useful 😉 Thank you for watching 👍🏿

@SurajPatil14 Год назад

Great video. Thank you

@kaykhanom 3 года назад

Once again a brilliant video covering valuable information for home buyers 👍

@SelfInvested 3 года назад

Thank you as always, Kay! I really appreciate your support and encouragement 🙏🏿

@adamenaz1141 3 года назад

Love these videos man!

@SelfInvested 3 года назад

Glad to hear it! Thank you for watching and dropping a comments as well!! ;)

@wina6631 2 года назад

You’re doing well! Keep it up… quality content.

@SelfInvested 2 года назад

Thank you, Win! I appreciate the encouragement :)

@TheMckinsons 3 года назад

Great video with lots of useful information

@SelfInvested 3 года назад

Thank you! I’m glad you think so! Are you planning to use this mortgage?

@niallmurray9725 3 года назад

Thanks for the well informed video 👍

@SelfInvested 3 года назад

You’re welcome, thank you for watching 👍🏿

@TheSarahandYou 3 года назад

Great video. Thank you. You're a great man!

@SelfInvested 3 года назад

You’re very kind, Sarah. Thank you!

@TheSarahandYou 3 года назад

@@SelfInvested You're very welcome!

@Soph_79 3 года назад

Thank you, this may be potentially very useful for me!

@SelfInvested 3 года назад

You’re welcome! That’s great to hear! Did you already know about this mortgage or was this the first time hearing about it?

@Soph_79 3 года назад

@@SelfInvested that was the first time. I'm so glad I found your channel, I found a it of useful information. And your input is amazing . Even this mortgage, very good point to think what's going to happen after initial period, in case outstanding amount will be higher than 4.5 of salary. There is a lot to think about. But thanks for the amazing job you are doing! :)

@SelfInvested 3 года назад

@@Soph_79 Thanks Soph! Yes, it’s a great option to have! There are ways to make it work for you even if the outstanding mortgage is more than 4.5x your income, For example, by overpaying or saving up to reduce the outstanding mortgage before you remortgage.You should speak to a mortgage adviser if you haven’t already...

@sheilaasare2369 Год назад

Hi is this going please let me know thanks for the video

@umistry2 3 года назад

great video it would be nice if all banks did the 5.5 times salary mortgages

@SelfInvested 3 года назад

Thank you, Umesh! The problem with this product becoming mainstream is that house prices will increase by a similar amount to the additional money available. When that happens, we'll just end up in the same situation that we're in now...

@nicolagolding3281 3 года назад

Great news, let hope other banks come on board..

@SelfInvested 3 года назад

The problem is that if this becomes a widespread product, house prices will eventually increase in line with the additional money that’s available to buyers... so we will just end up in the same situation... I do think it’s a good product, though, if availability is limited not to push up house prices

@lewisandjessrock 3 года назад

Great point about remortgaging, I was considering this mortgage but hadn't thought of that, will have to do some calcs, cheers!

@SelfInvested 3 года назад

You’re welcome! Yeah, it might not be something you need to worry about, but it’s worth checking. I still think it’s a really good option to have!

@lewisandjessrock 3 года назад

Yes definitely, was considering it compared to help to buy equity but seems like I would need to keep it for around 6 years to reduce the mortgage amount to 4.5x salary from 5.5x (assuming no pay increase)

@SelfInvested 3 года назад

You should be able to overpay by 10% a year (do check!), which might help bring it down to 5 years... You could also save up alongside your mortgage and then pay down a lump sum at the end of your deal and before you remortgage...

@lewisandjessrock 3 года назад

Very good point Lemuel, something I will consider, thanks!

@praveennair1 3 года назад

Interesting video, I know a few people who may benefit from this video.

@SelfInvested 3 года назад

Thank you! Please share with them... I think they may need to be quick!

@AnuAgboola 3 года назад

Ah interesting! I spoke to a mortgage adviser last week Tuesday and she mentioned this. By the sound of it I just can’t afford to buy on my own! I would need to save more deposit for even the 5.5x mortgage 😒 ah this seems impossible.

@SelfInvested 3 года назад

Yeah, house prices are very high, especially in London! There are other schemes that can help you buy, but you need to research them well and consider all your options before committing to any! I cover quite a few on this channel. Have you watch any of those videos?

@Livingwithlucy 3 года назад

Great video. Any thoughts on how quickly the 1bn may run out and when it does will there be some warning? For example could a person with a DIP from Nationwide end up putting an offer in for a property requiring 5.5x mortgage to then apply for the helping hand mortgage to find it's no longer available?

@SelfInvested 3 года назад

Thank you Lucy! In terms of how long the £1bn will last, it’s difficult for me to guess tbh - but it’s not a vast amount of money in the current housing market. With regard to a DIP, this usually time bound, if I’m not mistaken, so I’d be surprised if your mortgage offer was withdrawn during this period. Are you using a mortgage broker? I think they will be in the best position to answer this. Otherwise, you could ask Nationwide directly... Hope this was helpful...

@Livingwithlucy 3 года назад

@@SelfInvested Hi, thank you for the reply. I sure am using a broker and have a DIP but I have a little more saving to do now to increase deposit to get the 10% for 5.5x income lol. You mentioned 1bn is only 400 mortgages at 250K which panicked me but I actually think it is 4000, is that right? X

@SelfInvested 3 года назад

Oops! Yes, you’re right! 🤦🏿‍♂️ I’ll have to pin a comment to the top of the video!!

@GASHPAN 3 года назад

The Nationwide definition of a first-time buyer (meaning no mortgage in last 3 years) - is this the only instance where this definition is not the same as the Gov definition, i.e. first-time buyers who have never owned a property previously at any time?

@SelfInvested 3 года назад

Generally, I would think when something says ‘first time buyer’ that usually means someone who has never owned a property. However, Nationwide provided their own specific definition for the term. It’s important to check or ask for a definition from the author if it’s unclear...

@OmoladeOkaiyeto 3 года назад

Thank you for breaking this down

@SelfInvested 3 года назад

You’re welcome! Thank you for watching 👍🏿 Do you plan to apply for this mortgage?

@OmoladeOkaiyeto 3 года назад

@@SelfInvested no not at all but definitely a good scheme that will benefit many

@SelfInvested 3 года назад

I agree!

@ioanapirate7537 3 года назад

I had no idea Nationwide released this new mortgage so definitely not late for me! Unfortunately it's unlikely me and my partner will be able to benefit as we won't be ready to buy for another year

@SelfInvested 3 года назад

It’s good to know that it was worth making the video! I might need to start a weekly newsletter with this sort of information, to make sure people don’t miss out on products/schemes like the Helping Hand mortgage... 🤔

@TheMckinsons 3 года назад

@@SelfInvested how about using your community tab for updates?

@SelfInvested 3 года назад

@@TheMckinsons Good point!

@Sofura.academy 3 года назад

Although the price is steady I noticed houses are selling out so quickly probably because of the stamp duty holiday extension till 30th June. The question is- As a first-time buyer (duty-free at all time), is it wise to wait and buy the house after 30th June?

@SelfInvested 3 года назад

Generally, I think so but the stamp duty relief for first time buyers is only up to £300k and if you find a home you love, is worth letting it go speculatively? Having said that, I’d be tempted to wait because there will be less upward pressure on house prices once the stamp duty holiday passes. Also, it’s probably too late to make the June 30th deadline if the home buying process hasn’t started yet...

@Sofura.academy 3 года назад

@@SelfInvested Okay, thanks, so, I think this is the perfect time to jump on the searching/viewing property if I wanna buy after 30th June? How important is having life insurance to buy a house?

@faithb4236 3 года назад

I i was wondering if there are any lenders that will accept5-10% deposit and also 5.5 x income

@SelfInvested 3 года назад

So, Nationwide will accept a 10% deposit if you're buying an existing house. There are other options if you are a professional, such as an accountant, solicitor, etc. - but it's best to speak with an independent mortgage broker (that has access to the whole market) to find out more. Having said that, I don't think there's any lender that will give you 5.5x your salary with a 5% deposit (but I may be wrong!) The only other option I can think of that will boost your buying power in a similar way, if you have a 5% deposit, is the Help to Buy loan.... but with that scheme you can only buy new build

@felixhabarugira7680 3 года назад

Will definitely check them out cause my bank is giving me a runaround...

@SelfInvested 3 года назад

Yes, it's a very interesting product. Are you using a mortgage broker? They can advise whether your situation is well suited to this product...

@felixhabarugira7680 3 года назад

@@SelfInvested don't know yet I tried their website this morning but it wasn't on it so I will give them a call

@philomenesadia2865 3 года назад

Thanks, it's a shame that it's not for self employed

@SelfInvested 3 года назад

You’re welcome! Yes, I think the self employed have been hit hard by the pandemic when it comes to mortgages...

@SnowofLight 3 года назад

What is the best way to find a mortgage advisor? Do I speak to my bank?

@SelfInvested 3 года назад

Hi there! I cover finding a broker in this video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-5cg8Y1RLxWM.html (I've timestamped the relevant part of the video). Also, here's a link to a chat I had with the broker I used (his details are in the video description): ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-wRz_1S9MAUY.html

@juliantheapostate8295 3 года назад

Hell no, make sure any adviser you use is fully independent and whole of market

@SelfInvested 3 года назад

@@juliantheapostate8295 Yup, I agree

@Abrina98 3 года назад

Hi sir 6 years mortgage for me I can buy ? please

@SelfInvested 3 года назад

I think it’s 5 or 10 years...

@Sienio48 3 года назад

I'm so lost with all of that schemes. Let's say: My partner is earning ~28k annually I have 28k but really bad credit/ so I will be excluded in mortgage offer. We have one 2y kid. What the best schemes if we need at least 2 bed and live in expensive area(South coast) where 2 bed flats are 150k and 3 bed terraced house are around 230k?

@SelfInvested 3 года назад

Hey there! Have you spoken to a mortgage broker?

@clownworld3913 3 года назад

Make more money

@Sienio48 3 года назад

@@clownworld3913 easy to say.

@Sienio48 3 года назад

@@SelfInvested haven't got a chance since my situation isn't the best to look for mortgage

@SelfInvested 3 года назад

@@Sienio48 Speak to a mortgage adviser. It’s usually free and they can advise you on your options. I can point you in the direction of one if you want?

@mango4ttwo635 3 года назад

this doesn't help you buy more house, it helps sellers get a higher price from you for the same house. The Debt Bubble gets ever bigger. 2008 was an all-time high, it is now higher

@SelfInvested 3 года назад

I do cover this point in the video, but as long as this type of product doesn't become mainstream (normal), then it should still help people to buy...

@vanessamensah 3 года назад

Is there anything for self employed people? Cos at the moment we seem to be left in the dust 😩

@SelfInvested 3 года назад

I know, right? It’s because lenders are nervous about the impact COVID will have on the economy... and what this will mean for the self-employed...

@GD_02 3 года назад

Thanks you just listened to the @letsrelatepodcast very useful information I struggled a bit with the audio

@SelfInvested 3 года назад

Glad you found it useful! Yeah, the audio was in out... which is disappointing because I thought It was a great chat! Hopefully people will forgive the quality of the audio...

@GD_02 3 года назад

I went over more of your videos to cross reference questions on my purchase. I found a few answers quite vague from the freeholders with regards to sink funds & insurance , so I’m just taking time out constructing questions for them to clarify next week. Thank you so much for your help it’s thrown up so many points. I thought were covered by my solicitor but found the emphasis is actually my responsibility to make sure the questions had actually been asked.

@SelfInvested 3 года назад

Well done! Sounds like you are doing your own due diligence. Don’t let the freeholder fob you off with non-answers. I find the professionals you employ: solicitor, mortgage adviser, etc. will sometimes do the minimum they can get away with because they dealing with multiple cases at the same time. The sinking fund is important because it protects your pockets (the bigger it is, the better) and so is the buildings insurance. Have you seen/read your lease yet? This very important. It will have vital information about things like ground rent and how it increases...

@GD_02 3 года назад

Thank you I may also do a quick review of my mortgage just to confirm I have currently the best deal in place. I’d only of considered doing a lot of this having gone through your videos

@SelfInvested 3 года назад

That makes me happy! :)