100% Mortgages are Back! (Huge News!)

oh my goodness as a property investor and with a property Channel I am so excited to talk about 100 mortgages because they are back in the UK the first time since 2008. this is huge Skipton mortgages skipped and mortgages were the first lender that introduced by to let mortgages and now they have finally brought in 100 mortgages for first-time buyers huge one of the reasons I'm so excited about this because when I started in 2008 everyone's everyone says oh it was easy for you because you could get 100 mortgages I mean they scrapped it just after I got started but still and that was what how many years ago 14 years ago now they're back no excuses so in this video I'm going to talk about what 100 mortgages are specific requirements of Skipton mortgage and whether you are eligible or not maybe right now you're renting if you're renting and you're paying a grand a month do you know that you could potentially buy the house that you're renting with 100 mortgage without putting down a penny as a deposit this is crazy how do I think it's going to affect the housing market in the UK over the coming months and years and do I think this is a good thing a bad thing and should you be doing it so if you enjoy my channel do me a favor smash the like button and I want to know your thoughts as well in the comments below so 100 mortgages what does it mean 100 mortgage simply means that when you're buying a house there'll be a lender that will give you a hundred percent of the money to buy the house okay normally speaking when you buy a house you might put down a deposit right so if you want to buy a house for 300 000 pounds and let's say you need to put down 20 because every different lender has got a different requirement of how much you need to put as a deposit compared to how much they're going to loan you so if you're buying a house for 300 000 pounds and you can speak to a bank or you speak to a mortgage lender and they say oh you need to put down 20 then that means that you need to save up sixty thousand pounds and you'll put down sixty thousand and sometimes the lenders on top of that will charge you a fee just for giving you the money they'll say you need to put down sixty thousand we'll loan you the rest and you need to pay us a fee for giving you the loan skip to mortgages have said for certain people and this is for first-time buyers that want to buy the house that they are living in now of course you can't do this if you've got terrible credit you also have to have been renting the property for the last 12 months and there's of course affordability checks if you're living in a house I think I think it's up to 600 and something thousand pounds is the maximum amount and it also depends on how much rent you're paying right now so if you're paying a ground which is about the average rent to own a thousand pounds they will loan you up to 163 000 pounds so you know this you can't be buying a mansion on 100 mortgage this is for first-time buyers this is for uh not for brand new apartments and this is for tenants who are wanting to buy a house without using the deposit another great thing about this is Skip tools don't charge a fee so there's no fee so the only thing that you're going to have to pay if you're eligible for this and you live in a house that you want to buy is your legal Feast your solicitor fees which might cost you about a thousand pounds so that's what it is do I think it's a good thing and how do I think it's going to affect the the housing market I think it's a great thing I think it's a really really good opportunity for first-time buyers to get on the property ladder and I think that ultimately if you look at Working Class People okay normal average Everyday People in nine to five jobs that don't make more than 50 60 Grand a year if you look over their life from the age of 20 to 60. most working-class people make made most of their money not in their job you know what you know how most people make money accidentally accidentally they've been trying through the house that they buy most people work their ass off for 40 years working 40 hours a week and how much they're making like 20 30 grand and they're having to spend all that to live if you look at the average person speaks the average 50 or 60 or 70 year old most of the money that I made was accidental wealth made by buying a house and the problem is with today in 2023 is if you need 60 000 pounds to buy a house How Are You Gonna Save 60 000 pounds saving up sixty thousand pounds is going to take you a lifetime so for the average person to get on the property ladder it is a nightmare so I think 100 mortgages are a fantastic thing I think it's going to help Ordinary People tenants get on the property ladder what are some of the cons well it's possible that you might buy a house for say a hundred grand and you get 100 mortgage you buy a house and it's possible that that house drops in value what does that mean that means that you are now in negative equity so there is a possibility of debt when I bought my first house in 2009 for a hundred thousand pounds it dropped in value I bought in 2009 and everyone was saying what are you doing and it dropped in value but I didn't sell it I held on to it and now it's worth 300 000 pounds I still own it today so short time if houses drop you may be in negative equity however does that really matter because if you're planning on living in the house forever or for a long time if you hold on to it long enough it's gonna probably go up in value the security you'll get from I only get I think it's a good thing the other thing I'll mention as well is the interest rate that skips the charging is just over I think it's 5.3 percent it's just over five percent so if you're borrowing 100 Grand that means that you're gonna you're gonna need to work out how much are you having to be paying on interest and make sure that that amount is less than rent okay because there's no point buying a house living in it getting 100 mortgage if you then can't afford to pay the interest payments so I think generally it's a really good thing what I will say is this though even smarter than buying a house and getting 100 of the money from skip to mortgages would be to do this because let's put this into perspective the house you're buying from Skipton the mortgage requirement is going to have certainties and seats so for example I don't I'm not um I'm not eligible for skip to mortgage but I imagine you probably can't get a skipped and mortgage 100 and then rent it out you have to live in it yourself I don't know if you can rent the rooms out maybe you can maybe you can't but there's going to be limitations so I would say is if you're excited about the idea of getting a house without putting down a deposit it even if you don't qualify for skip to do it you can do instead you can find a house a really good investment property that you've negotiated by cheap and you get 100 loan to buy it not from Skipton but from an investor you can go to property investment networking events and find investors that are time poor and cash rich and you can say hey I found a banging deal and I want you to put the money in and I will do all the work and we'll split the money so there's more than one way to get a house without putting down a deposit the description mortgages so what I would say is whilst I think this is a really good thing be open-minded to other ways you can get a house without pointing deposit down on a purchase lease option agreement I thought this is one of the things I did when I was 19 years old I bought a house my first lease option agreement it was on the market for 85 Grand there was no equity in it the seller was motivated and I said what's the lowest you could accept he said 81. I said well I'll buy it for 81. but I'll buy it in seven years time and in the meantime I'll take over the mortgage payments so I took over the mortgage payments of 145 pound a month rented it out for 550 made a little income from it and then used that extra income that I was making saved it as a deposit and then in seven years time I had the option to buy for 81 and in which point it was worth way more than 81. I mean damn you could even control properties on rent to rent without putting down a deposit so there's so many ways that you can buy properties without a deposit but this is just one Skipton maybe you're eligible if you're eligible if you're living in a house and you're a tenant and you like it and the landlord's up for selling and you qualify with Skipton boom good go do it get on the property ladder buy it hold on to it have the security of it cool but if you don't qualify and you're not eligible then go and get a purchase lease option agreement or go and find an investor or an angel investor buy a property cheap that's run down and get a bridging loan there are bridging companies that will give you a hundred percent sometimes if the deal is good enough that doesn't make the headlines though does it 100 bridging man buy it cheap push the value up and then refinance it pay off the bridging line you left with the house with Freight has so many ways so I love the scripting thing um it could potentially push house watches up a little bit I think it's going to out balance things um I don't think it's going to massively affect the property Market because I don't think enough people will do it I think that a lot of people won't be eligible and those that are eligible probably just not even know it exists all but like oh I can't afford the legal fees it's amazing people say that you know I met a lady recently who said she had the right to buy her house it was a council house and she had the right to buy it 60 below market value imagine that 60 below market value and not only that okay because she said but it doesn't matter it could be 70 I don't have the money to buy it I put her in touch with a mortgage broker who said that she could use the discount as the deposit she could put down all she had to pay was a legal Feast of 2000 maps and she could buy the house in London sixty percent below architecture because I haven't got any legal fees there I can't afford to pay the legal fees I was so like angry I just gave her the 2 000 pounds because it's like come on if you so a lot of people won't do this um I don't think it's going to massively affect the housing market it might be that more and more people stop doing it if they do start doing 100 mortgages I mean if we look back at history in 2008 when the banks were given out 125 mortgages I mean I remember when the banks were literally oh I want to buy this house for 100 grand here's 125 Grand 100 grand for the house and 25 Grand to refurb it and have a holiday that's how crazy the banks were they got so loose and giving out money that house prices went right up because everyone's buying houses if everyone's buying houses everyone's got the money to buy a house who does push house prices up then the banks run out of money suddenly we had the credit crunch then houses crashed the outages would always go up down up down but uh ultimately houses are a good asset if you could hold on to them um so that's my thoughts what do you think though comment below if you want to do some of the other strategies like if you want to do um you know purchase lease option agreements or you want to do deal sourcing where you want to raise finance and find buy refurbish refinance auction opportunities anything like this I'd love to spend a day with you and teach you at the property investors crash course all I know about property condensed into one day thousands of people have done this one pound course and thousands of people have results so if you want to come and spend a day with me I'll leave a link in the description get booked on and I wish you all the very best in your success [Music] foreign [Music]

Channel: Samuel Leeds

Views: 42,207

Keywords: property investing, uk property investing, how to invest in property, property training, property education, property entrepreneur, property investing tips, property investing news, real estate, real estate investing, millionaire, property millionaire, passive income, below market value property, how to be a property investor, 100% mortgages, Skipton mortgages, Should I get a 100% mortgage, Negative equity, New mortgages 2023

Id: zwtnisF3_44

Length: 11min 43sec (703 seconds)

Published: Mon Jun 05 2023