New zero deposit mortgage that’s not only for first-time buyers

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Proportunity announced they are launching a 0% deposit mortgage. They already offer an equity loan for up to 25% of a property's value for home buyers with a 5% deposit (similar to the government's Help to Buy Equity Loan scheme). Their latest product will help people buy homes without the need of a deposit.
In this video, I discuss how the zero deposit mortgage might work, whether it's likely to be a good deal for buyers and compare Proportunity's equity loan to the Help to Buy Equity Loan and Shared Ownership schemes.
CONTACT DETAILS
Email: lemuelstudios@gmail.com
Instagram: @SelfInvested_UK
Twitter: @InvestedSelf
LINKS MENTIONED/USED
Proportunity equity loan - www.proportunity.com/faq
Help to Buy is a form of Shared Ownership - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-kkfCOIj60IM.html
Staircasing Shared Ownership - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-fhwQrKW8Ux8.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
00:00 Intro
00:25 What is Proportunity?
02:24 What will the 0% deposit mortgage look like?
05:36 Is this a good deal for homebuyers?
09:34 How does Proportunity's equity loan compare?
13:50 Outro
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.

Опубликовано:

4 июл 2022

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Комментарии : 70

@SelfInvested 2 года назад

CORRECTIONS/CLARIFICATIONS/UPDATES: 1) Clarification: The actual details of the 0% deposit mortgage are not yet known. This video speculates about what the mortgage might look like, and looks at the equity loan Proportunity currently offers. 2) Correction: The lower Proportunity equity loan interest rate of 5.99%, only stays at that level for the first 2 years (not 5 years). It then moves to 8.49% for 3 years.

@TheMalcolms7 2 года назад

Thanks for the video. This deal is just diabolical! I wouldn't advise my worst enemy to take this deal. I can already see folks getting into serious financial problems because of this. In my humble opinion, most of these schemes are not very good in the long run. This is by far the worst in my humble opinion.

@SelfInvested 2 года назад

Approach with caution!

@joline2730 2 года назад

Hi Lemuel, your assessment and comparisons are interesting, and explained very well !! However, I would definitely advise anyone to steer well clear of all and any of these so called "helping people to buy a property" schemes. All these schemes are extremely complicated, and that is a purposeful manoeuvre on the part of the lenders !! Lenders want to find ways to make you borrow more money - that is their sole business. The high interest rates you quoted show just that. You are not free to 'shop around' for a better rate. 9.99 per cent is astronomically high, which of course is PLUS the BoE base rate !! No, the one and only way to buy a property (freehold is best) is to save save save for a decent deposit, find a property which is within your means, i.e. don't borrow to the hilt of your disposable income, and get an ordinary Repayment mortgage. The lenders prey on young people who do not understand how mortgages work, and most do not even know what 'per cent' even means, and they do not understand how this affects the mortgage, they just know if the base rate goes up or down then your mortgage goes up or down. My strong advice to new buyers is to Get Educated first. PS: Per Cent means per hundred. So if you are quoted 5% then you will pay £5 for every hundred you borrow - and there are TEN hundreds in every thousand !!

@SelfInvested 2 года назад

Thanks, Jo! I agree with you. Freehold is best but not a realistic for everyone. The best thing person can do is research their options, and get professional legal and financial (e.g. mortgage/financial adviser) advice, so they can make an informed decision. I've spoken to former shared owners that have made the scheme work for them, and people happy with their Help to Buy. I think the key thing, as you say, is to get educated first. The easiest way to be disappointed is by not understanding something before signing up.

@ememedem6476 2 года назад

Thanks for shedding light on these schemes. Proportunity is the worst I’ve heard of so far. I can see some comments saying ‘save your money so you won’t need any scheme’ and ‘free hold is the best’. But the reality is that not a lot of people can save up 25% down payment with the income they have. Rents are going up, inflation is on the rise. How are young people supposed to cope? In my opinion, HTB is still the best option of the 3. It’s a shame it’s coming to an end. Hence why we have so many of these schemes springing up. if you have a plan for the next 5 years on HTB you’ll be fine. I know people who are paying way more for a shared house when they can pay less on mortgage if they had down payment. Speak to your mortgage/financial adviser. I wish everyone luck on this journey.

@SelfInvested 2 года назад

My pleasure! As you say, housing is not a one size fits all. People need to research their options and get advice

@Bellajoie24 2 года назад

Finally a video from you.. have been waiting on your update about the HA right to buy news.. please do cover when you can. Thanks

@SelfInvested 2 года назад

I know! Forgive me 🙏 I've made a few videos since coming back, not as frequent, but you can check out my channel page to see any you've missed. The Right to Buy video is coming, I promise. I actually wasn't planning to make this video but I got a bit exercised about the product and had to make a video on it

@wina6631 2 года назад

@@SelfInvested yes updated vid regarding RTB for HA please

@T-London 2 года назад

Very well explained, thank you!!

@SelfInvested 2 года назад

My pleasure :)

@lysec9672 2 года назад

Hi Lemuel. I'm Fran, we met at BoxPark in East Croydon towards the end of May! I'm glad to see more video uploads 🙂. Looking forward to a more in depth comparison video and any future videos really. They really help to keep me focused and motivated to keep saving towards owning my own home one day. If you can throw in anything with regards to single homebuyers on an average London income, that would be much appreciated 😉

@SelfInvested 2 года назад

Hey Fran! Thanks for leaving comment letting me know it’s you :) Hope you and your friend are well. Glad to hear you find the videos motivational. I think that’s a good suggestion, and I remember you mentioning it, I just need to think how I come at it 🤔

@deedee1297 2 года назад

Yes please, a more in depth video on the three please. This was good many thanks

@SelfInvested 2 года назад

Thank you, Dee! Noted ;)

@tashakingdom2 2 года назад

Really interesting and helpful. Thanks

@SelfInvested 2 года назад

My pleasure, Natasha :) Thanks for leaving a comment!

@Ness_mae 2 года назад

Very informative video, would love a more in-depth comparison video of all three schemes. Thank you !

@SelfInvested 2 года назад

Thank you for leaving a coming! I'll have to start thinking about how I approach it :)

@sophiastuart4357 2 года назад

Great video 👍🏽 would be great to see the comparison video of all three when you upload

@SelfInvested 2 года назад

Thanks, Sophia! I'm looking forward to making that one!

@abiodunadebowale4492 2 года назад

Very enlightening thanks for this

@SelfInvested 2 года назад

Very welcome, bro! Thank you for watching as always :)

@fluffyblue9112 2 года назад

Thanks so much for this great video Bro

@SelfInvested 2 года назад

I'm glad you liked it! I was geniunely excited about making it :)

@Mattbriggs85 2 года назад

Yes would love vid on the comparison of the 3 schemes. Is there and end of each of the schemes?

@SelfInvested 2 года назад

Great! Thank you for leaving a comment :)

@dawidbielsko Год назад

Fantastic video,1st of Yours which i actually see (will try catch with rest of them) and after Your correction dont look do good unless we are on the top of the housing bubble which will burst soon (Hope for that in name of many 1st buyers). Yeah doing great job Man 👍💪

@SelfInvested Год назад

Thank you, Dawaga! Were you saying this is the first video of mine you’ve ever seen or the first video of mine you’ve seen in some time?

@dawidbielsko Год назад

@@SelfInvested i meant ever 😁 never seen You before,maybe didnt look properly 😁 anyway its a pleasure well done for big effort 👍

@SelfInvested Год назад

@@dawidbielsko Well, welcome and thanks again for watching! Hope you enjoy my other videos!

@ox3965 2 года назад

I have a Huge deposit, but once again it doesn't address the 4.5 (salary). Which doesn't buy you anything, but my rent that I pay is the same or more then a mortgage 😡. These schemes don't make any sense, please tell me if I am wrong

@SelfInvested 2 года назад

I know, very frustrating! You should check out or ask your mortgage broker about the Habito 7x salary mortgage and the Nationwide Helping Hand mortgage (5.5x salary)

@ox3965 2 года назад

@@SelfInvested Thanks I will look into this

@Nu72ral 2 года назад

Hello sir any further updates on Lease Extension...Terms 999 years and cost council can charge for lease extension??? Look forward to hearing from you.

@SelfInvested 2 года назад

Hey there! Have you seen my latest update video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-qhy9kQqy0kQ.html ? I think there's an intention to bring about the increased 990-year lease extension by 2024, but there is no guarantee this will happen...

@lizardking392 2 года назад

Do you think Proportunity's current offering of the 5% deposit + standard equity loan is more attractive? I.e. paying a 5% deposit and getting the 10% equity loan to help secure an 85% mortgage at the lower interest rate. It is what I am leaning towards at the moment for our first home as the thought of repaying the 10% back after 5 years seems a lot more achievable.

@SelfInvested 2 года назад

Hi Marc! Possibly... It's worth looking at with a mortgage broker. I know that's one way Proportunity sold it originally - the equity loan interest is high but the mortgage interest rate you'll be able to get (for the bigger amount you're borrowing) will be low because the LTV will be lower, which in effect will mean the combined rate will look more attractive. The problem with that now is that mortgage interest rates are rising, especially for lower LTV mortgages, so that combined rate doesn't look as attractive at the moment...

@kimsanghyuk97 2 года назад

Can I ask if you know what on earth is going on with the first homes scheme??

@SelfInvested 2 года назад

Haha! Where are you based?

@kimsanghyuk97 2 года назад

@@SelfInvested I'm based in Bristol, I've been trying to follow the scheme since its announcement but it's incredibly frustrating how slow the process is. For example, surely we should be provided with a 'map' to show areas where the scheme is in place, and areas where the scheme is coming soon in etc! I'm a first time buyer, 25, working for the NHS. I've about 50k in deposit but I still need a 30% discount to get a decent 2 bed property!

@SelfInvested 2 года назад

I’m not sure if you’ve seen my First Homes video (ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Rsp8vvFq81g.html), but it was only the pilot scheme that was launched last year - so, as you can expect it, it is smaller than what the main scheme will be. I think you’ll start seeing homes on the main scheme from the end of 2023 (earliest), but more likely from 2024. I need to do more research on where to find First Homes, but from what’s been explain so far, they will be advertised in a similar way to the Help to Buy scheme, so you should be able to find them on the typical search engines, such as Zoopla, RightMove, etc., not sure if there will be a dedicated website, but I think you can check for updates with your local Help to Buy agent

@xjay1234 Год назад

Got my mortgage offer - onto conveyancing!

@SelfInvested Год назад

Congrats!! Good luck with it all!

@xjay1234 Год назад

@@SelfInvested Thanks! Once completed I'll let you know. Would be happy to collaborate with my facts and figures!

@helloyoutube1689 2 года назад

I am interested how do i go about with it am in uk

@SelfInvested 2 года назад

Which scheme are you interested in?

@helloyoutube1689 2 года назад

@@SelfInvested I just want to buy a house I have a deposit of £10 000

@SelfInvested 2 года назад

@@helloyoutube1689 Do your research on any scheme you’re thinking about before signing up!

@anthonyfaucy2761 2 года назад

So its basically the help to buy scheme rebranded

@SelfInvested Год назад

Help to Buy is government run. This is a private company. But I’m sure it was inspired by that scheme

@reneerobinson5273 2 года назад

To be honest all of these “help schemes” for people to buy a home isn’t really helping. The average salary is around 30K depending on where you live. 30k x 4 is not even going to buy a door in London and other places. They need to do something about the continued raise in house prices and that will assist people with owing/buying a home

@SelfInvested 2 года назад

It’s a shame but I think shared ownership, in whatever form, is going to becoming very common in and around places like London because prices are so high

@ala1092 Год назад

Facts

@ConceptQuad2 2 года назад

I would leave this scheme, what are the restrictions, can you let out the property..? I just staircased 100% and will sell or let shortly..just be mindful with these new movement scam!

@SelfInvested 2 года назад

Not entirely sure... I'd need to look into this... Well done on staircasing to 100% ownership!

@JustTheHighlights Год назад

The low barrier of entry with more complicated costs makes me concerned that we're heading back to the sort of practices that led to the 2008 recession. Place your bets for another recession in 2028.

@SelfInvested Год назад

It is worrying!

@TheWellnessAbbey 2 года назад

Avoid, avoid, and avoid 😊

@SelfInvested 2 года назад

Definitely one to be wary about!

@Tony_Teacake 2 года назад

Forget these loans Boris and his cronies are bringing out a 50 year mortgage 🤣 I advise anyone please steer clear any of these loans and wait. Try and save some money over the next few years, (easier said then done with rampant inflation). Massive discounts on houses coming up in the next 1-3 years of between 20-50% off.

@SelfInvested 2 года назад

That would be far bigger than the 2008 crash!

@Tony_Teacake 2 года назад

@@SelfInvested I believe it will be bigger. Just look at America, Canada and Australia there housing markets have already taking a turn for the worse. China’s housing market as already started crashing and come winter time the UK will start seeing the downturn. The main driver for this crash will be rampant inflation, it's going to damage businesses and economies all over the world. The 2020s is going be a really bad decade and this crash will make 2008 look like a small blip. We are going to pay the price for all of this money printing which as artificially pumped up all the markets. War in Ukraine as only made thing so much worse. I wish we weren't in this position as we are all going to feel it. This inflation is worse then the 70s but they don't measure everything in the CPi like they did back then.

@naijaboi8837 2 года назад

Bearing in mind that the product has not been launched and typically alwith property the devil is in the detail. I wonder how you can reasonably discuss the product.

@SelfInvested 2 года назад

Hey there! You’re right. I speculate about what the product might look like, but I might be totally wrong. I go on to discuss Proportunity’s equity loan product, which is currently available, and give a brief comparison between it and other shared equity schemes, which I think is fair. Did you watch the full video?

@arali932 2 года назад

It's mission impossible to buy a house in the south of England now no matter what. We can only hope the housing market crashes.

@SelfInvested 2 года назад

I understand how you feel. However, I don’t think we’ll see any massive dips soon. I think these co-ownership schemes are going to become more commonplace