Yorkshire Building Society offers first-time buyers with £5,000 to spare, a high mortgage rate for 5ys at 5.99% on houses worth up to £500,000. The deal exc flats & newbuilds, perhaps in attempt to lessen the risk of negative equity from new build premium prices & by encouraging investment in homes with room to grow. This will only appeal to a small number of buyers, out of the Capital, who earn well, want out of the rental mkt & want to put down roots @George_Nixon97 @thetimes
@emmafildes if you “earn well” then saving up a bit more than £5k is not hard
@emmafildes The flats and new builds market is becoming increasingly toxic because of cladding and building safety issues - big problem
@emmafildes if it walks like gabling if it quacks like a gambling..
@emmafildes Worth noting CFDs are often likened to gambling, but most retail investors are limited to 5:1 leverage With this mortgage product, you have 100:1 leverage and a 1% fall in the house value wipes out your stake. A 5% fall and you may be unable to remortgage.
@emmafildes Anything to keep the Ponzi scheme going
@emmafildes Roll up, roll up! A mere £5k to secure your very own money pit of negative equity and repossession in 5 years time! Thats right folks, the lucky buyers can rent a mortgages for a whole 5 years before we ask for the keys back and bill you if the value falls enough… HURRY, HURRY!
@emmafildes "The deal exc flats & newbuilds" - nothing to do with the #BuildingSafetyScandal of course, and definitely nothing to do with leasehold/groundrent/service charge abuse; nothing to see here, move along.
@emmafildes This deal over a typical 25-year term will cost: Monthly payment: £3,186 Total repaid over the term: £955,880 Made up of: £495,000 capital, and £460,880 interest