Tories to Launch 99% Mortgages? Impact on Property Investors Unveiled

Tories to Launch 99% Mortgages? Impact on Property Investors Unveiled

9:58 AM, 29th January 2024, About 4 months ago 10

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99% mortgages are on the horizon! Join Ranjan Bhattacharya as he dives into the details of this groundbreaking development and explores its potential impact on property investors.

What does this mean for those looking to enter the property market or expand their portfolios? Our analysis will provide valuable insights, considerations, and strategies to navigate this potential new landscape.

Watch the video below


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Comments

Cider Drinker

10:05 AM, 29th January 2024, About 4 months ago

A sign of just how desperate the government is. Must keep house prices at all costs.

GlanACC

11:49 AM, 29th January 2024, About 4 months ago

Property investors would not (and should not) be allowed 99% mortgages.

TheMaluka

14:57 PM, 29th January 2024, About 4 months ago

Reply to the comment left by GlanACC at 29/01/2024 - 11:49
Why not?

Ryan Stevens

15:15 PM, 29th January 2024, About 4 months ago

I remember the good old days of 110% and self-certified mortgages. What could possibly go wrong? 😀

GlanACC

16:41 PM, 29th January 2024, About 4 months ago

Reply to the comment left by TheMaluka at 29/01/2024 - 14:57
99% mortgages for property investors is not a good idea. If you did that every man and his dog would hoover up a property to rent. I think at least 25% deposit should be mandatory as that does give some cushion to financial shocks. Having said that, the mortgage lenders wouldn't lend a 99% mortgage to a property investor as I think tey would be more cautious. Also, I think the government would not allow it.

TheMaluka

16:55 PM, 29th January 2024, About 4 months ago

Reply to the comment left by GlanACC at 29/01/2024 - 16:41
whilst I agree with your comment surely the decision should be in the hands of the investor and his lender? If I could make money with a 99% mortgage and someone was will ing to lend 99% then I would go ahead. In practice I only go for 0% loans but that is my decision and my business model, I do not dictate to others.

Badger

18:02 PM, 3rd February 2024, About 4 months ago

Reply to the comment left by TheMaluka at 29/01/2024 - 16:55
I'm guessing we'd all like a shot at getting some of those 0% loans that you refer to.

Care to share where you get them from?

Or do you mean that what you actually do is to purchase outright using 100% cash?

TheMaluka

8:18 AM, 4th February 2024, About 4 months ago

Reply to the comment left by Badger at 03/02/2024 - 18:02
0% borrowing not 0% interest.

Ryan Stevens

17:43 PM, 4th February 2024, About 4 months ago

Reply to the comment left by TheMaluka at 04/02/2024 - 08:18
Most landlords would be unable to follow your decision or business model. Out of necessity they have to gear as much as possible because they only have small deposits.

GlanACC

18:18 PM, 4th February 2024, About 4 months ago

Reply to the comment left by Ryan Stevens at 04/02/2024 - 17:43and thats where it all goes wrong .. I geared up and borrowed £1.1m BUT as I had other businesses if anything went wrong (as it did in 2008) I could still afford to 'subsidise' the properties from my other cash flow. This was a concious decision when I borrowed the money, knowing I was still OK. In fact it all started to go wrong and I was twice on the BBC Money Program as one of the landlords who were losing money., however in my case I was still 'solvent'. I had 3 years of making a loss but in the end I had 18 properties and sold 12 to pay off the mortgages on the others (which I still have). So now I am pretty fireproof as the tenants I have are all long term and I don't need to worry about mortgage increases. The problem today is too many landlords a too highly geared and don't have a fall back plan. Even one bad tenant could (will) scupper them.

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