My 95% mortgage experience: @FinanceDee talks about buying a home with a 5% deposit

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@FinanceDee talks to me about her 95% mortgage experience. The Government recently launched the 95% Mortgage Guarantee Scheme but many are worried about high interest rates and negative equity. In this video, we discuss the pros and cons of 95% mortgages and why they could be preferable to Shared Ownership and the Help to Buy scheme for first-time buyers.
CONTACT DETAILS
Email: lemuelstudios@gmail.com
Instagram: @SelfInvested_UK
Twitter: @InvestedSelf
LINKS MENTIONED/USED
Finance Dee's 95% mortgage video - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-ca4_Fu-krSk.html
The 95% Mortgage Guarantee Scheme - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-hE19TjU0D9E.html
Freehold vs Leasehold - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-B-GZhQ0P48w.html
New builds vs Older builds - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-okjtPNQHdG0.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
Tell us about the place you bought 01:03
Why did you chose a 95% mortgage? 01:44
What were you told about 95% mortgages 03:37
What was the interest rate of your 95% mortgage 05:31
90% mortgage vs 95% mortgage 07:15
What is your current LTV? 11:50
Key considerations for 95% mortgages 15:28
Practical tips for anyone considering 95% mortgages 21:15
Outro 31:27
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. 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.

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Опубликовано:

19 июл 2021

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Комментарии : 57

@strictlyyoutube6881 2 года назад

A very important often left out part of the plan is having a good marriage and family vision. Having a married partner who is optimistic and supportive is paramount to being able to do this with.

@SelfInvested 2 года назад

Very valid point! Having a shared destination, which is clear, helps everyone row in the same direction!

@kejikazz6613 3 года назад

This was great interview. I got so many nuggets from this. Thank you!!

@SelfInvested 3 года назад

Thank you, Keji! I’m glad you found it useful! I knew Diandra would be a great guest! I love your thumbnail btw 😜

@TheWellnessAbbey 3 года назад

Brilliant conversation. I learned a lot.

@SelfInvested 3 года назад

Thank you Rachel! I’m glad you liked it :)

@mzp3tite 3 года назад

Amazing!! Great tips and gems. Thank you! 😊

@SelfInvested 3 года назад

You’re welcome! Thank you for watching :)

@Thepearlsandperils 3 года назад

Another great video, it was nice to see another perspective and real life experience on the 95% mortgage

@SelfInvested 3 года назад

Thanks, Peta-Kay! Yes, I’m grateful to Diandra for chatting with me about it :)

@sarahz9745 2 года назад

Really useful and insightful video. Thank you!

@SelfInvested 2 года назад

You’re welcome! Glad you think so :)

@adventuresofanathan 2 года назад

Thank you SO MUCH I feel so encouraged this the year to buy a property and I feel like I can say that with confidence thank you!!

@SelfInvested 2 года назад

All the best with it! 💪🏿

@anit628 2 года назад

This was very helpful, thank you

@SelfInvested 2 года назад

You’re welcome, I’m glad you found it helpful. Thank you for watching and leaving a comment!

@fluffyblue9112 3 года назад

Thanks so much for this Great Lecture.Cant just Thank you Enough.

@SelfInvested 3 года назад

You’re very welcome! I’m guessing you were considering whether this type of mortgage was right for you? Happy to see you liked it :)

@fluffyblue9112 2 года назад

@@SelfInvested Yes Bro.I believe this is still the best type of Mortgage for me

@belz33 2 года назад

This is really great content. It's all about being educated and well informed and these kind of videos are fantastic. I have heard sooo many misconceptions about the 95% mortgages from well meaning people who just don't have the correct info.

@SelfInvested 2 года назад

Thank you for leaving such a kind comment, Belinda. I’m grateful to Diandra for speaking with me about her experience. I knew she would be a great guest because she communicates very well and is very knowledgeable about personal finance!

@Deanthomson88 2 года назад

Wish I knew this 10 years ago. I would already have so much profit in a property. I'm actually close to tears finding all this out.

@SelfInvested 2 года назад

Sorry to hear that, Dean. Please don’t dwell on the past. Focus on what you can do now to get what you want in the future.

@oe5827 Год назад

Love this, great info

@SelfInvested Год назад

You’re welcome! Thank you for watching :)

@Donkey1994 3 года назад

Great Video as always . Do you think prices will slightly drop after this Covid situation and Furlough coming to an end. Also moving outsidfe of London is not a option for a everyone unfortunately.

@SelfInvested 3 года назад

Thank you Telly! I did think prices would slightly drop after the stamp duty holiday and furlough schemes end, but I’m not sure anymore. There’s still a lot of demand and limited supply… The truth is no one knows

@pls.donttagme 2 года назад

Great content

@SelfInvested 2 года назад

Thank you for watching and leaving a comment!

@violineu8630 3 года назад

What an eye 👁 opener on 95% mortgage. Do more videos please. I would like to know wether age matter when it’s comes Mortgages and 5% Deposit.

@SelfInvested 3 года назад

Glad you think so! What would you like to see videos on? I don’t think there’s a unique issue with age when it comes to 5% mortgages. I think there’s a general issue with age and length of mortgage. Generally, the older you are, the shorter the mortgage period you can get… Have you spoken to a mortgage broker about your situation?

@kashishgaba2038 2 года назад

Hello! I have been waiting for some new videos from you? Are there any on the way?

@SelfInvested 2 года назад

Hey! Sorry for the wait! I’ve recorded an interview with a Help to Buy user and just need to edit, record an intro/outro and upload… It will be out soon… but you’ll have to forgive the rustiness!!

@elana604 2 года назад

This is great if your married. What about if your single parent? Can you do videos on single parent homeowners and there journey to owning their homes, it would be helpful

@SelfInvested 2 года назад

I will definitely try! It’s extremely difficult for a single person to get on the property ladder, let alone a single mother… I think a story like that would be very inspiring! Thank you for the suggestion 🙏🏿

@aishaa927 2 года назад

Hello I wanted to ask what you think I’ve been offered a very high interest rate of 4.39% for three years…should I avoid or is it worth it to get on the property ladder?

@SelfInvested 2 года назад

Hey there! It’s depends on the LTV, your creditworthiness, type of mortgage, length of deal and many other factors. Generally, yes, it sounds high for current mortgage rates, but that doesn’t mean it isn’t the best rate for you. Are you using a mortgage advisor? They would be best placed to advise you, after assessing your circumstances and plans. They should also be able to explain why they’ve recommended a certain deal for you if it’s not the cheapest available. You can always have a look on mortgage comparison sites to see if you can find a better deal and ask your broker if different deal you like the look of would be suited to your situation. You could also get a second opinion from a different mortgage advisor. It’s best to go with an advisor that has access to the whole market, not just a selected group lenders. Many advisor don’t charge you a fee upfront so you could get one to check for free. Hope this helps!

@aishaa927 2 года назад

@@SelfInvested yes the reason I was offered this product was because of my loan to value. No other lenders would offer me the amount needed for the property. I have now pulled my offer and looking to offer on something cheaper as I feel the economy is too unpredictable to go for such a high interest rate. Thanks for responding!

@joline2730 2 года назад

@@aishaa927 Interesting that you have decided to look for something more within your price capabilities - so many people borrow beyond this. I see this was a little while ago now so wonder if you have sorted this. My opinion is (for what it's worth) is absolutely Don't consult with a financial adviser. I know lots of peeps say to do this but listen - they don't do it for free, they get paid. They therefore do not really have your best interests in mind - they will steer you towards the lender who pays them the most. My advice is to do your own homework, and I would advocate building societies rather than banks. Good luck 👍💯🏠🏠🏠

@lindajanet 2 года назад

Good that she’s talking about overpayment options because in other videos she has done, she has not shown much understanding and was downplayed the benefits and also said she wouldn’t do it. Thankfully the other women were able to balance the view

@SelfInvested 2 года назад

Yeah, I think it depends on your circumstances, goals for the future and risk appetite. As she mentioned, it could reduce the amount of interest you pay each month and also your interest rate when you remortgage, but there's opportunity cost for not investing that additional money which could quite reasonably return more than the cost of interest over a similar period as a mortgage - hope this makes sense?

@FinanceDee 2 года назад

Hi Linda. Not sure you understood what I meant and therefore you’ve taken it as a lack of understanding? There is a strong argument to be made that investing money vs. overpaying your mortgage is more beneficial, especially at a time like this when interest rates are so low. It’s a personal choice and very much depends on your circumstances. As you can tell from this video, overpaying has not been something we needed to focus much on because we have had a drastic change in our LTV in a short amount of time. Thus, investing has made a lot more sense.

@MrCwalkerify1 2 года назад

Unless I’m mistaken doesn’t the 95% mortgage scheme end in 2023? If so, is there a possibility that it’ll be extended?

@SelfInvested 2 года назад

Yes, the government scheme may end then, but this doesn’t mean lenders will stop offering 95% mortgages. There are already lenders offering 95% mortgages without government backing. The scheme was started to give lenders confidence in uncertain times

@MrCwalkerify1 2 года назад

@@SelfInvested ahhh ok thanks. I think I’ll go for the 95% mortgage in that case then. I was considering shared ownership next year but no need knowing that lenders are readily doing 95% mortgages without government backing. Do you know if there’s any particular difference between the government backed 95% mortgages and the ordinary 95% mortgages? Aside from schemes such as help to buy of course.

@SelfInvested 2 года назад

@@MrCwalkerify1 95% mortgages without government backing may be slightly cheaper because there’s a cost to the lender for each product they sell with government backing and this cost is usually passed on to the borrower

@MrCwalkerify1 2 года назад

@@SelfInvested ahh ok thanks

@psg8802 2 года назад

Hahaha, mug!! You’ve been set right up!!

@SelfInvested 2 года назад

How so?

@ManyMannyMan Год назад

@@SelfInvested trolls always going to troll

@joline2730 2 года назад

A reduced deposit i.e. 5% and not the full 10% has nothing whatsoever to do with a lender - inasmuch as it is the seller who agrees to accept the lower deposit. In the end, of course, the seller gets all the money, so it's not a problem to accept only 5%, but the full 10% may become due if the buyer fails to complete on time. But a buyer does need to find a lender who is prepared to lend a full 95% to a potential purchaser, if they have not got enough money saved for a full 10%. I don't really understand the "we decided to go with a 95%" statement. She is looking at the process from the wrong direction - in my opinion.

@SelfInvested 2 года назад

I see what you’re saying, but I haven’t heard of a seller not accepting a 5% deposit, as opposed to a 10% deposit. I do know cash buyers are more attractive to sellers, but I’m not sure how much of difference a 5% or 10% deposit is to a seller. I think when she said we went for a 95% mortgage, she’s just saying that they decided not to wait to save another 5% before looking for a place to buy

@jessd4414 2 года назад

Hi, could you explain the 72% LTV she now has on the property? Trying to fully understand. Thanks

@SelfInvested 2 года назад

Hey Jess! Always happy to explain. So, say for example, she bought a place for £300k with a 95% mortgage, she would put down 5% deposit of £15k and take out a mortgage £285k. Over time, as she makes repayments, the outstanding mortgage will reduce. If after a few years, she repaid £15k (in addition to the interest), her outstanding mortgage would be £270k, which means the mortgage now has a LTV of 90% (=270/300). However, if as well as reducing the mortgage, the value of her place increased by 25% (from £300k to £375k), this would reduce the LTV to 72% (=270/375). In reality, she won’t really be able to benefit from this until she remortgages. When she does, she should be able to take advantage of mortgages with lower interest rates because of the lower LTV. Hope I’ve explained this clearly?