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Mortgage Guarantee Scheme Extended - but beware of the economics

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Rob discusses the recent extension of the mortgage guarantee scheme by the government, which allows individuals with a small deposit to apply for a government-backed 95% mortgage guarantee, enabling them to get on the housing ladder.

While this may seem like a great opportunity, Rob highlights the potential risks involved, particularly if the value of the property decreases in the future. 

KEY TAKEAWAYS

  • The government has extended the mortgage guarantee scheme for 18 months, allowing people with a small deposit to apply for a 95% mortgage guarantee.
  • The scheme enables both first-time buyers and current homeowners to purchase properties up to £600,000 with a 5% deposit.
  • While the extension of the scheme may seem beneficial, there is a potential risk of negative equity if the value of the home decreases during the mortgage term.
  • It is important to consider the economic factors and potential risks before jumping into the scheme, and to have a strategic plan in place.

BEST MOMENTS

"The government have extended the mortgage guarantee scheme for 18 months and that's very interesting because of the potential economic turmoil that may happen in the next couple of years." 

"And that is where you really have to consider where you're buying, what your plan is, what you're doing moving forward." 

"The amount of people that have no idea of the economics and what could potentially happen and what is likely to happen is incredibly scary." 

"Hence the reason for this episode, just to bring that alertness and to consistently add value and to give you things to think about." 

VALUABLE RESOURCES

GET YOUR DEVELOPMENT FINANCE HERE:

https://propertyfundingplatform.com/WharfFinancial#!/borrowerinitialregistration

SOVEREIGN MAN PREMIUM INTELLIGENCE MEMBERSHIP https://dash.sovereignman.com/a/smc12m995/tpnpodcast

SOVEREIGN MAN 4th PILLAR https://dash.sovereignman.com/a/4pmain/tpnpodcast

ABOUT THE HOST

Rob Smallbone is the author of the Amazon best-seller Buy-To-Let: How To Get Started as well as 101 Top Property Tips and Property FAQ’s.

BOOKS 

Property FAQs = https://amzn.to/3MWfcL4  

Buy To Let: How To Get Started = https://amzn.to/3genjle  

101 Top Property Tips = https://amzn.to/2NxuAQL  

WHERE TO FIND US

https://linktr.ee/thepropertynomadspodcast

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