If you want to get in touch with Anthony, you can contact him at: hello@trinityfinancial.co.uk This episode was recorded in September 2024. The rates and other figures we mention may have changed since then.
We've been overpaying the maximum since we bought out house 2.5 years ago.. We could have gotten a better return had we invested it or saved it, but then we could have been tempted to spend it.. Whereas now, our mortgage is essentially getting cheaper and cheaper every year and should be paid off in 2.5 years.
You can pay off your house in 5 years? Did you have a massive deposit or earn very high salary, or bought a really really cheap house. I guess most people watching this are not in the same boat.
@ Our house was £185k and we put down £105k as our deposit.. We wanted as small a mortgage as possible as I knew interest rates were only going to increase and I’d rather be comfortable than be house poor.
@@GeorgeAustersa big deposit for a house of £185k. Good for you that you were able to get that money together. it took us years to get that kind of equity in our home
I locked my mortgage in at 2.49% for 10 years when I bought in 2019... my thinking was that it could only go down by 2% at most, whereas it could go up a lot more... and then it did. currently saving away into high interest cash ISAs ready to clear the mortgage when the fixed rate ends in 2029
That was exactly my thoughts.. They were only ever going to go up from 0%... We fixed for 5 years and just overpaying to get it paid within those 5 years
Yes well this is what brokers should of been telling people at the time, they never because they want to keep you on the hook for repeat business. Bit of a scandal really.
@@QBR1234 actually your wrong brokers can’t predict the future they advise you wants best and if it’s cheaper to take a 2/5/10 at the time then they’ll advise you they also make you aware what the prices would be should rates rise. It’s down to you to decide what’s correct low rate but risk of the rates rising or fix long term with a little extra on the monthly cost vs the short term fixes at the time
The fact you’re watching this video is a good indicator… 95% are not interested in financial literacy, and have no problem just listening to parents to just borrow the maximum you can as property prices always go to the moon
Another great episode guys! I think one of the scenarios that never seems to be mentioned is the middle aged person who is trying to get a house after a divorce, particularly if you're self employed - we're always on the finance naughty step!!. That would be great if you could introduce that into your videos where appropriate. Love the stuff you do!!
Thank you so much for uploading this episode! As someone in their late 20s, just finishing a Ph.D. and entering the full-time workforce, I found this incredibly reassuring. Learning that the average first-time buyer is in their mid-to-late 30s really helped put things into perspective for me. I’ve been feeling a bit down about property prices and the time it will take to save for a deposit, but this episode gave me so much valuable knowledge and hope. Please do invite this guest again in 12/24 months so we can all benefit from his expertise and experience - Thank you.
wow this has been very helpful even though i have been lucky to get my first mortgagee in at 27. I got my mortgagee and worry that the rate i got was high but this has made me feel better about having a possible way to get prices down.
Myself and my girlfriend bought our house 5 years ago for 218k . We put 5% down and now have 88k left on it on a 1.1% fixed rate until 2027. We will easily pay the whole house off and have the remaining money invested ready. We were offered at the time a loan up to 410k. It we wanted to live below our means as we were literally buying a house with such little interest. Best thing we ever did.
Why are you lying man you’d never get 1.1% on 95% ltv stop with the bs Also 1.1% over 10 years is £1824 pm, according to do you borrowed £207,100 and have paid off £119,100 over 5 years which works out to be over £1900 pm in capital alone if what you say is true which I don’t think it is then you should have paid off your mortgage by now
@ I’m not lying, we bought a 2 year fixed and then paid a lump sum off to get another 5 year which end in feb 27. Why would I lie on a UA-cam channel?! We have enough to pay it off but the remainder is in shares and bonds as if break the redemption and it is hardly any interest incurring.
@@frusciantesplectrum7980 You said you bought the house five years ago which makes that 2019 but your own timeline makes it 2020 you’re lying Also I’ve worked in mortgages for the last 9 years and 1.1% wasn’t available in 2020 most rates were between 1.5%-2.5%
@@frusciantesplectrum7980 So you did lie because you didn’t mention the overpayment of your read your post you said you took out a 1.1% on a 95% ltv product which you didn’t
Scam ay! Had this same argument with my parents. How is someone who doesn’t have a credit card less valuable than someone who borrows constantly. It’s a game
I@@laurieproctor3572 it's not about the fact they're needing to borrow... it's showing the banks that you can borrow and repay the money back on time.
@@laurieproctor3572the bank does not know you. They do not know your spending habits and how well you handle debt. That’s what a credit score essentially is. Just get a free CC, load your phone/gym etc on it, in a year or two, your score would be better. It’s easy for us to call BS on banks, but would you lend to someone who you don’t know their spending habits?
I hate that it is this way, but I can understand it from a risk-based perspective. From a lender’s point of view, the person with lots of credit and a proven track record of paying their debts is safer than someone with no record; a complete unknown.
@PurpleXatt This track record makes sense when no other pieces of information would ever be available. Fortunately we live in times where there are electronic trackable transactions, open banking, p60 forms, self assessment reports, nhs electronic record, where with little to no effort they can see the salary increase dynamics over time, spending habits, investments, interest earned etc. Broke but punctual addict would never be economically more viable than a person with great stable income, and great budgeting habits...
People look at a mortgage with a "forever" mindset. You can switch from repayment to interest-only every 5 years, and even with interest-only you can usually pay up to 10% of the capital down with any spare cash you have.
@leeboucher2977 Offset mortgages are the hidden gem of mortgage products imo. But the banks don’t make as much profit on them, so it’s not a product that’s pushed by commission earning mortgage sales people.
@MarkHeywood1 I’ve done it twice now and it was the only way I would have been able to get on the property ladder. I would say get a good mortgage broker as not as many banks lend for shared ownership. Also get a resale shared ownership house if possible, as new builds are overpriced. If you have to buy a flat, get one in a small development with no lifts, as the service charge goes up with lift maintenance costs. For flats, make sure the housing association has a sink/reserve fund for cyclical repairs, this will save you money in the long run. When you get a mortgage, overpay every month even if it’s just £50. It will help you pay less interest and build equity. When you earn more or you pay the mortgage down you can buy more shares until you reach 100%. I have been able to get to 100% within 6 years of buying my house. The most important thing with a leasehold is to make sure it has at least 85 years on the lease and extend the lease before it goes below 80. Good luck!
Misleading answers to the question about 30-year fixes in the UK. Perenna offers fixed rates for up to 40 years with only 5 years early repayment charge. They also offer porting the mortgage and generally encourage to remortgage if the rate favours the consumer. Brokers advise consumers to take 2-year fixes because they get paid every time they arrange a mortgage. But look at the situation that advice has created for consumers over the past couple of years with massive rate cost increases. Most people are better off opting for protection against rate risk than selecting the cheapest short-term rates.
@ point exactly is how uncertain current conditions are for any individual who tries to make future predictions about the economy or financial decisions in the near term has always been wrong
@@1lovefootball the movement in rates since is neither here nor there though and much lower since the recent peak. If a few fractions of a % are making a difference to your choices you are probably over leveraging in the first place. Rates are on a downward trajectory, high street lenders have priced in BoE rate cuts, some of which are being reversed slightly since a December cut is unlikely. The trajectory is still down though.
What is still a mystery to me is what's best in this scenario: You are remortgaging with the same lender after your current fixed rate period ends, should you go with their valuation of your property [residential in this case] or pay for an official valuation?. the value of your house affects how much your lender is going to lend you. Traditionally, they always UNDER value your property by a huuuuuuge mile, I think we got shafted by our current lender because we accepted their valuation of our property.
Depends on your loan to value if you’ve got 20% ltv then it’s pointless it’s only worth getting a valuation IF it makes the rates better sometimes it won’t becuase most lenders offer rates in standard brackets 60,75,80,85,90 & 95% and if your loan to value is 72% before the increased value and 65% with the new value then it’s pointless as you haven’t changed a major banding
Insightful...thank you. The guest has a very familiar accent (south africanish, with a hint of kiwi in there) or its a different UK accent altogether. Im not British so im still learning.
Yeah he’ll be South African or white Zambian/Zimbabwean maybe, it’s more subtle than other accents I’ve heard from that area who have lived in the UK for some time but there are certain words which are obvious tells
The system in place in the UK it’s simply mad. How can you work this out with the biggest investment the average family does in it’s lifetime? Fixed 300k& at 1% 30year mortgage at the end of 2020 in Italy.
@@patmanrick you can just buy for a reasonable amount of cash in most other markets as the price of housing isn't so absurdly inflated as it is in the UK.
@@drifty_grifty which markets? Sure you can buy cheaply in some places but in most places where people from the UK would tend to want to emigrate (generally Western Europe, North America, maybe Australia or New Zealand), prices are also really high
To be honest many of my friends went to a mortgage advisor just to find info on how to prepare but we were told that without a house and a price they wouldn't be able to give us the info. So maybe advisors also need to be willing to direct people in the right way and prepare them adequately before going ahead
Thing is in the right circumstances it can make sense. The video makes mention of inflation eroding the real value of the debt over time. If you're early in your house buying journey, which I assume this type of mortgage is aimed at, then it can be helpful even on your primary residence. Forget 99% - in the 90s as a 21 year old graduate in my first 'proper' job I got a 110% mortgage! And because I knew with luck I would be in the housing market for the rest of my life it made sense gambling that my earnings would increase over time (easing the pain of the monthly payments) and that house prices would go one way in the long term growing my equity for future mortgages. If I'd not done that I wouldn't be in the housing position I am now three decades later. No matter how ridiculous it can seem to have a debt that size and the sheer amount of interest being paid, unless there's a huge house price crash/correction then in the fulness of time it'll look like (comparatively to future money purchasing power) peanuts. I think it much more important to make sure the affordability of servicing the debt is OK from the off and you know what your plan B is if things go wrong. But I acknowledge it is a gamble and with the lack of housing affordability compared to wages it's a much bigger gamble than I took all those years ago.
As a dual citizen and owner the US products are better. A two year term correlates with changing a car. Not changing where you live. The UK lending model is essentially greedier and relies on less financially literate buyers.
How you’ll pay more interest on the American system than you ever will with the UK and who says you have to move after your deal you could literally just refix or go to another lender who will offer same thing, you’re the one who sounds financially illiterate
2.09% until June 2029, I’ve got 54k left (plus 5% early repayment charge but that comes down every month esp with an overpayment). I won’t be able to pay it off by the time the fixed rate ends but I’ll have far less to go so hopefully the interest rate won’t be as eye-watering as my lender’s standard variable rate of 8.25% 😮
The things that boils my piss about mortgage is the bank agree to lend money, you spend it, then 5 years later they want to review the interest on the money they’ve already lent and you’ve spent. The initial rate should be for the lifetime of the mortgage. If rates go down, then remortgage and pay off the original mortgage.
Why you benefit from the system say you fix at 5% for five years and then it’s 3% you are better off, rather than the American system where you pay 8% for life of mortgage if take this system any day of the week
So the guy who's a mortgage broker says the 1st thing you need to do is find a mortgage broker. I'm shocked. All the information is there if you want to DIY, you do not NEED a mortgage broker if you're prepared to do some research.
You can't even get a viewing without a mortgage in principle. I don't understand how anyone could go into this without the finance first. I've never met anyone in this group and I don't know how you could enter it.
My broker is specific (doesn’t use vague language like ‘bits & pieces’) he’s fast and can deal with more complex scenarios. I work for a big bank, they wouldn’t touch me with a barge pole😮
Supply and demand there are more homes for sale today then ever b4 houses market is screwed I understand this guest whole business is riding on the housing market and when prices go up his job is easy. please don't over pay!
Some people are too busy to research all of this by themselves. Others are in special circumstances that require special advice. I think advisers serve a purpose to a good majority of people. You forget how low financial literacy is.
A friend has a joint mortgage with her mum as a sort of guarantor - when remortgaging, she found it hard to find a bank that would keep such an arrangement, a broker was really needed for such a case
@@MyAirMyles Generally I agree, but at the time it was the only way they could have enough earnings. Otherwise she would be locked out of the property market for the next 10 years or so. As it is, last I heard she was stuck on the Standard Variable Rate until she finds a company willing to touch it.
Thats a dream that salary in london are higher than other parts of the UK that’s lie not everyone or should I say only 25% gets higher salary others are still on low income in london
I keep hearing 'interest rates are moving downwards' in this video. Yeah, they have. Is it really likely that they're going to go much lower? No. Is there plenty of reason (e.g. inflation rising, Labour's policies over the next 5 years and the state of the economy generally, the obvious impact of Trump doing even half of what he says he will....) to think that they may begin to rise again fairly soon.
Similar situation. 1.38% until May 2026. £141k left on the balance, about 41% LTV. I overpay my mortgage by £100 every month but in no way can I afford to pay the whole thing off before the rate jumps (doesn’t help that my income dropped during the pandemic.) Doing my best to bring the amount owed down as best I can. If rates stay the same til then, projected to cost me an extra £100-ish a month (or £200 if you don’t count my existing monthly overpayment). But hopefully it comes down a bit more.
Or, just use one of the comparison websites and avoid paying these guys a fee. Mortgage providers don't offer exclusive products for Advisors these days, you can get what they can get. Just do your research.
How so? Costs nothing to go to a broker (or at least, all borrowers subsidise those who use brokers) and in my experience saves a lot of headache re paperwork
@patmanrick maybe I was just unlucky. I've used them twice. The first one sold me an endowment (long time ago). First clue that they will always act in their own interests not yours. The second kept me on the phone while he basically filled in the same form as I would have done. I had to verbally answer all the questions instead of typing them. It felt like a waste of time. He still got his commission but the process seemed harder to.me.
Renting is better than buying. Put all your money on the S&P 500 instead. You'll end up with more money, even when you consider the property appreciation and unrecoverable rent, etc. FACT.
If you want to get in touch with Anthony, you can contact him at: hello@trinityfinancial.co.uk
This episode was recorded in September 2024. The rates and other figures we mention may have changed since then.
Probably the best guest you’ve had on in a long time
Excellent straight taking guest. Please invite him back in next 12/18 months. Keep up the good work!
Glad you enjoyed it! Getting Anthony back on once a year to give a view of the market is a great shout
Thanks for the feedback.
This is the type of video that should be taught in schools
Bi-annual catch up episode with this guy would be so useful.
We've been overpaying the maximum since we bought out house 2.5 years ago.. We could have gotten a better return had we invested it or saved it, but then we could have been tempted to spend it.. Whereas now, our mortgage is essentially getting cheaper and cheaper every year and should be paid off in 2.5 years.
ye if you weren't a child with no self control you could have invested it for much greater returns
@@blahbleh5671and they could have invested it and the stocks crash 50%
You can pay off your house in 5 years? Did you have a massive deposit or earn very high salary, or bought a really really cheap house. I guess most people watching this are not in the same boat.
@ Our house was £185k and we put down £105k as our deposit.. We wanted as small a mortgage as possible as I knew interest rates were only going to increase and I’d rather be comfortable than be house poor.
@@GeorgeAustersa big deposit for a house of £185k. Good for you that you were able to get that money together. it took us years to get that kind of equity in our home
I locked my mortgage in at 2.49% for 10 years when I bought in 2019... my thinking was that it could only go down by 2% at most, whereas it could go up a lot more... and then it did.
currently saving away into high interest cash ISAs ready to clear the mortgage when the fixed rate ends in 2029
That was exactly my thoughts.. They were only ever going to go up from 0%... We fixed for 5 years and just overpaying to get it paid within those 5 years
👌🏾
But you could have done a 2yr at super cheap and still got a 10 yr that expires 2031 no need to try gloat my fix ends 2032 😜🤣
Yes well this is what brokers should of been telling people at the time, they never because they want to keep you on the hook for repeat business. Bit of a scandal really.
@@QBR1234 actually your wrong brokers can’t predict the future they advise you wants best and if it’s cheaper to take a 2/5/10 at the time then they’ll advise you they also make you aware what the prices would be should rates rise.
It’s down to you to decide what’s correct low rate but risk of the rates rising or fix long term with a little extra on the monthly cost vs the short term fixes at the time
New listener, fantastic podcast. Asked on point questions, but also shut up and let the guy speak, really informative, well played. Subscribed
We saved planned and saved for 4 years before we bought our first house.. I find it crazy how someone can decide to buy after just a few months
The fact you’re watching this video is a good indicator… 95% are not interested in financial literacy, and have no problem just listening to parents to just borrow the maximum you can as property prices always go to the moon
Another great episode guys! I think one of the scenarios that never seems to be mentioned is the middle aged person who is trying to get a house after a divorce, particularly if you're self employed - we're always on the finance naughty step!!. That would be great if you could introduce that into your videos where appropriate. Love the stuff you do!!
Thank you so much for uploading this episode! As someone in their late 20s, just finishing a Ph.D. and entering the full-time workforce, I found this incredibly reassuring. Learning that the average first-time buyer is in their mid-to-late 30s really helped put things into perspective for me. I’ve been feeling a bit down about property prices and the time it will take to save for a deposit, but this episode gave me so much valuable knowledge and hope.
Please do invite this guest again in 12/24 months so we can all benefit from his expertise and experience - Thank you.
wow this has been very helpful even though i have been lucky to get my first mortgagee in at 27. I got my mortgagee and worry that the rate i got was high but this has made me feel better about having a possible way to get prices down.
Overpaying as much as you can without compromising your investments for me was the right choice.
Myself and my girlfriend bought our house 5 years ago for 218k . We put 5% down and now have 88k left on it on a 1.1% fixed rate until 2027. We will easily pay the whole house off and have the remaining money invested ready.
We were offered at the time a loan up to 410k. It we wanted to live below our means as we were literally buying a house with such little interest. Best thing we ever did.
Why are you lying man you’d never get 1.1% on 95% ltv stop with the bs
Also 1.1% over 10 years is £1824 pm, according to do you borrowed £207,100 and have paid off £119,100 over 5 years which works out to be over £1900 pm in capital alone if what you say is true which I don’t think it is then you should have paid off your mortgage by now
@ I’m not lying, we bought a 2 year fixed and then paid a lump sum off to get another 5 year which end in feb 27. Why would I lie on a UA-cam channel?! We have enough to pay it off but the remainder is in shares and bonds as if break the redemption and it is hardly any interest incurring.
@@frusciantesplectrum7980 You said you bought the house five years ago which makes that 2019 but your own timeline makes it 2020 you’re lying
Also I’ve worked in mortgages for the last 9 years and 1.1% wasn’t available in 2020 most rates were between 1.5%-2.5%
@@frusciantesplectrum7980 So you did lie because you didn’t mention the overpayment of your read your post you said you took out a 1.1% on a 95% ltv product which you didn’t
Credit score makes sense when you have credit. What is utter BS is when you didn't need to use Credit Cards ever, and still have a bad credit score.
Scam ay! Had this same argument with my parents. How is someone who doesn’t have a credit card less valuable than someone who borrows constantly. It’s a game
I@@laurieproctor3572 it's not about the fact they're needing to borrow... it's showing the banks that you can borrow and repay the money back on time.
@@laurieproctor3572the bank does not know you. They do not know your spending habits and how well you handle debt. That’s what a credit score essentially is. Just get a free CC, load your phone/gym etc on it, in a year or two, your score would be better.
It’s easy for us to call BS on banks, but would you lend to someone who you don’t know their spending habits?
I hate that it is this way, but I can understand it from a risk-based perspective. From a lender’s point of view, the person with lots of credit and a proven track record of paying their debts is safer than someone with no record; a complete unknown.
@PurpleXatt This track record makes sense when no other pieces of information would ever be available. Fortunately we live in times where there are electronic trackable transactions, open banking, p60 forms, self assessment reports, nhs electronic record, where with little to no effort they can see the salary increase dynamics over time, spending habits, investments, interest earned etc. Broke but punctual addict would never be economically more viable than a person with great stable income, and great budgeting habits...
These are the videos everyone needs!
People look at a mortgage with a "forever" mindset. You can switch from repayment to interest-only every 5 years, and even with interest-only you can usually pay up to 10% of the capital down with any spare cash you have.
Only if you have £750k of equity.
I had an offset mortgage 8 years ago, through Coventry bs. It was brilliant for me being self employed. They don't seem very common for some reason.
I’m a self employed limited company and got a mortgage with Coventry bs but a fixed rate
@leeboucher2977
Offset mortgages are the hidden gem of mortgage products imo. But the banks don’t make as much profit on them, so it’s not a product that’s pushed by commission earning mortgage sales people.
I liked them too. Had one for about 10 years. Does the best thing for you without you having to make constant calculations
Would be great to hear more about the pros and cons of shared ownership & other schemes on new build properties for first time buyers.
Here’s the advice…don’t do it.
@MarkHeywood1 I’ve done it twice now and it was the only way I would have been able to get on the property ladder. I would say get a good mortgage broker as not as many banks lend for shared ownership.
Also get a resale shared ownership house if possible, as new builds are overpriced. If you have to buy a flat, get one in a small development with no lifts, as the service charge goes up with lift maintenance costs. For flats, make sure the housing association has a sink/reserve fund for cyclical repairs, this will save you money in the long run.
When you get a mortgage, overpay every month even if it’s just £50. It will help you pay less interest and build equity. When you earn more or you pay the mortgage down you can buy more shares until you reach 100%. I have been able to get to 100% within 6 years of buying my house.
The most important thing with a leasehold is to make sure it has at least 85 years on the lease and extend the lease before it goes below 80. Good luck!
I work in mortgages and wish I could show this video to every potential customer before they call me.
Brilliant guest, enjoyed that .
The 30y mortgage provider is called Perenna
Great episode everyone !
11:00 If the bank is paying the fee then he is not advicing the borrowers he is just selling morgages for the bank.
Just stumbled across this and you guys for the first time. Excellent interview 👌🏽
My question is if you come out of a FT mortgage with only 6-7 years remaining. What are your options apart from clearing the mortgage?
Misleading answers to the question about 30-year fixes in the UK. Perenna offers fixed rates for up to 40 years with only 5 years early repayment charge. They also offer porting the mortgage and generally encourage to remortgage if the rate favours the consumer. Brokers advise consumers to take 2-year fixes because they get paid every time they arrange a mortgage. But look at the situation that advice has created for consumers over the past couple of years with massive rate cost increases. Most people are better off opting for protection against rate risk than selecting the cheapest short-term rates.
Mortgage rates today are much higher since the recording of this episode 😅😅😅😂😂😂
Much higher?
It was recorded September 2024
It says so in the video
That's only 2 months ago
@ point exactly is how uncertain current conditions are for any individual who tries to make future predictions about the economy or financial decisions in the near term has always been wrong
@@1lovefootball the movement in rates since is neither here nor there though and much lower since the recent peak. If a few fractions of a % are making a difference to your choices you are probably over leveraging in the first place. Rates are on a downward trajectory, high street lenders have priced in BoE rate cuts, some of which are being reversed slightly since a December cut is unlikely. The trajectory is still down though.
What?
Brilliant and informative discussion, thanks guys!! Love the content.
What is still a mystery to me is what's best in this scenario: You are remortgaging with the same lender after your current fixed rate period ends, should you go with their valuation of your property [residential in this case] or pay for an official valuation?.
the value of your house affects how much your lender is going to lend you. Traditionally, they always UNDER value your property by a huuuuuuge mile, I think we got shafted by our current lender because we accepted their valuation of our property.
Depends on your loan to value if you’ve got 20% ltv then it’s pointless it’s only worth getting a valuation IF it makes the rates better sometimes it won’t becuase most lenders offer rates in standard brackets 60,75,80,85,90 & 95% and if your loan to value is 72% before the increased value and 65% with the new value then it’s pointless as you haven’t changed a major banding
Insightful...thank you. The guest has a very familiar accent (south africanish, with a hint of kiwi in there) or its a different UK accent altogether. Im not British so im still learning.
Yeah he’ll be South African or white Zambian/Zimbabwean maybe, it’s more subtle than other accents I’ve heard from that area who have lived in the UK for some time but there are certain words which are obvious tells
The system in place in the UK it’s simply mad. How can you work this out with the biggest investment the average family does in it’s lifetime?
Fixed 300k& at 1% 30year mortgage at the end of 2020 in Italy.
Amazing
𝑾😊😊𝑾
This was so useful!
Currently going through the process. Very interesting and insightful pod, earned a subscriber.
Really good podcast. Thanks guys
House prices are very high and for what you get it's very questionable.
When I have the cash I'm looking abroad.
Getting a foreign mortgage is a nightmare
@@patmanrick you can just buy for a reasonable amount of cash in most other markets as the price of housing isn't so absurdly inflated as it is in the UK.
@@drifty_grifty which markets? Sure you can buy cheaply in some places but in most places where people from the UK would tend to want to emigrate (generally Western Europe, North America, maybe Australia or New Zealand), prices are also really high
If only you were taught financial literacy at school eh?
Credit scores
Interest rates
Credit cards
Loans
Mortgages
Pensions
Great advice, I would love to take him on as a broker if and when
Good episode thank you
Glad you enjoyed it!
Glad you enjoyed it and look forward to helping when the time is right for you.
Banks just look at the stats between defaults for employees and self employed. Self employed default a lot more.
4.07% from tide is ok, I can beat that in accounts we provide for businesses.
Amazing video very informative thankyou new subscriber
To be honest many of my friends went to a mortgage advisor just to find info on how to prepare but we were told that without a house and a price they wouldn't be able to give us the info. So maybe advisors also need to be willing to direct people in the right way and prepare them adequately before going ahead
Mortgage advisor? You mean mortgage broker!
My Dad in Florida had a 30yr fixed rate at 2% 😊.
In the US the long term fixed rates are very common, we do it quite differently over here in the UK.
Great and informative
This episodes is FULL of gems, thankyou!
I got charged a flipping fee and didn't even take the mortgage out shocking
Our capital and interest mortgage first two years of re-paying capital does not moved at all, bankers pocketing profits first...
99% mortgage, borrowing 495k. That's over 2k a month just in interest
Thing is in the right circumstances it can make sense. The video makes mention of inflation eroding the real value of the debt over time. If you're early in your house buying journey, which I assume this type of mortgage is aimed at, then it can be helpful even on your primary residence. Forget 99% - in the 90s as a 21 year old graduate in my first 'proper' job I got a 110% mortgage! And because I knew with luck I would be in the housing market for the rest of my life it made sense gambling that my earnings would increase over time (easing the pain of the monthly payments) and that house prices would go one way in the long term growing my equity for future mortgages. If I'd not done that I wouldn't be in the housing position I am now three decades later.
No matter how ridiculous it can seem to have a debt that size and the sheer amount of interest being paid, unless there's a huge house price crash/correction then in the fulness of time it'll look like (comparatively to future money purchasing power) peanuts. I think it much more important to make sure the affordability of servicing the debt is OK from the off and you know what your plan B is if things go wrong.
But I acknowledge it is a gamble and with the lack of housing affordability compared to wages it's a much bigger gamble than I took all those years ago.
11:08 lead generation is a huge cost on bottom line. So while they get paid, it’s not what it was pre 2008 crash.
Will house prices fall in London?
Default 5/6 years ago still affects you ?
My understanding is it comes off your credit record after 6 years
Very Good tips
As a dual citizen and owner the US products are better. A two year term correlates with changing a car. Not changing where you live. The UK lending model is essentially greedier and relies on less financially literate buyers.
So true
How you’ll pay more interest on the American system than you ever will with the UK and who says you have to move after your deal you could literally just refix or go to another lender who will offer same thing, you’re the one who sounds financially illiterate
Hate people who make offers and can’t get finance. So frustrating.
2.09% until June 2029, I’ve got 54k left (plus 5% early repayment charge but that comes down every month esp with an overpayment).
I won’t be able to pay it off by the time the fixed rate ends but I’ll have far less to go so hopefully the interest rate won’t be as eye-watering as my lender’s standard variable rate of 8.25% 😮
Build up a pot ready to clear the balance when your fix ends :)
The things that boils my piss about mortgage is the bank agree to lend money, you spend it, then 5 years later they want to review the interest on the money they’ve already lent and you’ve spent. The initial rate should be for the lifetime of the mortgage. If rates go down, then remortgage and pay off the original mortgage.
Exactly. The Americans offer fixed interest rates for the life of mortgage. Never understood why we don’t have this widely available in the UK!
Why you benefit from the system say you fix at 5% for five years and then it’s 3% you are better off, rather than the American system where you pay 8% for life of mortgage if take this system any day of the week
My mortgage was 102%. "Bank of Mam and Dad still has a lot of money to distribute down." In what world?
5:50 - you might want to cool it on the tax avoidance for a year, so you can get a bigger mortgage. 😂
So the guy who's a mortgage broker says the 1st thing you need to do is find a mortgage broker. I'm shocked. All the information is there if you want to DIY, you do not NEED a mortgage broker if you're prepared to do some research.
Interest only put the rest in the pension it's a no brainer
Not easy to come by a good mortgage broker
You can't even get a viewing without a mortgage in principle. I don't understand how anyone could go into this without the finance first. I've never met anyone in this group and I don't know how you could enter it.
Yep. Seems nuts but i have overpayed tax on purpose to make my income look as high as possible.
muy interesante!
My broker is specific (doesn’t use vague language like ‘bits & pieces’) he’s fast and can deal with more complex scenarios. I work for a big bank, they wouldn’t touch me with a barge pole😮
𝑨𝒓𝒆 𝒕𝒉𝒆𝒏 𝒅𝒊𝒔𝒂𝒈𝒓𝒆𝒆𝒊𝒏𝒈 𝒘𝒊𝒕𝒉 𝒉𝒊𝒔 𝒔𝒕𝒂𝒕𝒆𝒎𝒆𝒏𝒕 𝒆𝒗𝒆𝒓𝒚 𝒃𝒓𝒐𝒌𝒆𝒓 𝒄𝒂𝒏 𝒈𝒆𝒕 𝒕𝒉𝒆 𝒔𝒂𝒎𝒆 𝒅𝒆𝒂𝒍?
Supply and demand there are more homes for sale today then ever b4 houses market is screwed I understand this guest whole business is riding on the housing market and when prices go up his job is easy. please don't over pay!
Fees, fees, fees. Knowledge is key. A broker is just another fee.
Some people are too busy to research all of this by themselves. Others are in special circumstances that require special advice. I think advisers serve a purpose to a good majority of people. You forget how low financial literacy is.
A friend has a joint mortgage with her mum as a sort of guarantor - when remortgaging, she found it hard to find a bank that would keep such an arrangement, a broker was really needed for such a case
Only in the UK do they make something so simple so convoluted.
@@peterwstaceythis is a terrible idea in the first place. Never guarantee anything for anyone.
@@MyAirMyles Generally I agree, but at the time it was the only way they could have enough earnings. Otherwise she would be locked out of the property market for the next 10 years or so. As it is, last I heard she was stuck on the Standard Variable Rate until she finds a company willing to touch it.
"Mortage rates going down instead of up".
Damn that didnt take long to age poorly.
Thats a dream that salary in london are higher than other parts of the UK that’s lie not everyone or should I say only 25% gets higher salary others are still on low income in london
Me first! Whoop!
I keep hearing 'interest rates are moving downwards' in this video.
Yeah, they have. Is it really likely that they're going to go much lower? No.
Is there plenty of reason (e.g. inflation rising, Labour's policies over the next 5 years and the state of the economy generally, the obvious impact of Trump doing even half of what he says he will....) to think that they may begin to rise again fairly soon.
Still fixed at 1.53% until June 2026
Get it paid off before that ends!
It’ll hurt you get prepared
@@GeorgeAusters We have a 2.05% fix ending March 2027. Outstanding balance will be around £175k - how should I just " get it paid off"?
Similar situation. 1.38% until May 2026. £141k left on the balance, about 41% LTV. I overpay my mortgage by £100 every month but in no way can I afford to pay the whole thing off before the rate jumps (doesn’t help that my income dropped during the pandemic.) Doing my best to bring the amount owed down as best I can. If rates stay the same til then, projected to cost me an extra £100-ish a month (or £200 if you don’t count my existing monthly overpayment). But hopefully it comes down a bit more.
Or, just use one of the comparison websites and avoid paying these guys a fee. Mortgage providers don't offer exclusive products for Advisors these days, you can get what they can get. Just do your research.
I get the feeling he doesn’t know what self employed means.
Dont go to a mortgage broker kids. Its really not difficult to find a mortgage yourself. Easier in my experience.
How so? Costs nothing to go to a broker (or at least, all borrowers subsidise those who use brokers) and in my experience saves a lot of headache re paperwork
@patmanrick maybe I was just unlucky. I've used them twice. The first one sold me an endowment (long time ago). First clue that they will always act in their own interests not yours. The second kept me on the phone while he basically filled in the same form as I would have done. I had to verbally answer all the questions instead of typing them. It felt like a waste of time. He still got his commission but the process seemed harder to.me.
@antonywelford sorry to hear that
I don't agree, brokers get better rates and can help with problems if they occur in the buying process.
@@phildelaney9636 maybe it is just me!
Tide bank deplatformed Triggernometry for having unpopular opinions. Not a cool sponsor
Renting is better than buying. Put all your money on the S&P 500 instead. You'll end up with more money, even when you consider the property appreciation and unrecoverable rent, etc. FACT.
Mortgage broker is definitely worth the fee, don't live too defensively.
If only you were taught financial literacy at school eh?
Credit scores
Interest rates
Credit cards
Loans
Mortgages
Pensions