Does Boris’s 95% Mortgage for 1st Time Buyers spell disaster for Prices?

Brett Alegre-Wood
October 28, 2020

Great Job Boris

I love what Boris did here, it is an essential part of the market. He is trying to help the beaten market recover.

Boris strikes again hey, so lenders left wondering how PM's homeowner pledge will be achieved so basically what he's saying is 95% mortgage for first-time buyers. I love this okay and I love it, I think it's an essential part of the market. In actual fact for me I don't think the guy right now you know can step wrong in the things that he's doing when he's incentivising the market.

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It's a very different market in Scotland, it's a smaller market. There's some fundamental changes namely oil and gas with all the issues there and that I know Aberdeen and a few of those places house prices have dropped considerably. So, it depends on how that's reacted.

Yes the lenders are being arrogant to be fair because what they're saying is how are we going to do this, we're not prepared to take the risk. You know what the government should just go you know what we'll manage it, you lose all the money and watch how quickly they come running. The fact is 95% mortgages the reason that they don’t want to give 95% mortgages, there's a risk of the downside. 

So if there's only 5% equity there and prices drop that means they're in negative equity that can cause problems for the banks so I get that. So they're not total twats, but they are kinda you know because the problem is they want to help you at the best of times and then they stood you the worst of times.

When really that's when to be and to be fair that's when the government should be jumping in and doing things like 95% mortgages i love this concept if we want home ownership to be a cornerstone you know an Englishman's home his count is his castle you know and if we want to help the millennials get on the property ladder before they're freaking 50 then we have to do stuff like this. 

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Now is it just rehash help to buy possibly, yeah help to buy has been a great system and actually I love any of these concepts that gets people onto the ladder it changes people's lives. I've seen it happen. I've done it with my staff, I've worked with all my staff so to get them into their own property.

You know it's one of those things but one of the things I always say is you have to save 5% because i have a big belief that if you can save 5% then that's the discipline required to maintain a mortgage. So 5% over six months minimum and that doesn't mean your parents give you 5% you save it. If you're a millennial or you know not on the property ladder get that 5% in track.

Video Transcription

Boris strikes again hey, so lenders left wondering how PM's homeowner pledge will be achieved so basically what he's saying is 95% mortgage for first-time buyers. I love this okay and I love it, I think it's an essential part of the market. In actual fact for me I don't think the guy right now you know can step wrong in the things that he's doing when he's incentivising the market. Yes the lenders are being arrogant to be fair because what they're saying is how are we going to do this, we're not prepared to take the risk. You know what the government should just go you know what we'll manage it, you lose all the money and watch how quickly they come running. The fact is 95% mortgages the reason that they don’t want to give 95% mortgages, there's a risk of the downside. So if there's only 5% equity there and prices drop that means they're in negative equity that can cause problems for the banks so I get that. So they're not total twats, but they are kinda you know because the problem is they want to help you at the best of times and then they stood you the worst of times. When really that's when to be and to be fair that's when the government should be jumping in and doing things like 95% mortgages i love this concept if we want home ownership to be a cornerstone you know an Englishman's home his count is his castle you know and if we want to help the millennials get on the property ladder before they're freaking 50 then we have to do stuff like this. This is essential. Now is it just rehash help to buy possibly, yeah help to buy has been a great system and actually I love any of these concepts that gets people onto the ladder it changes people's lives. I've seen it happen. I've done it with my staff, I've worked with all my staff so to get them into their own property. You know it's one of those things but one of the things I always say is you have to save 5% because i have a big belief that if you can save 5% then that's the discipline required to maintain a mortgage. So 5% over six months minimum and that doesn't mean your parents give you 5% you save it. If you're a millennial or you know not on the property ladder get that 5% in track.


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