Are 95% mortgages to prop up the property market wise?
This is Money Podcast
This is Money
4.1 • 650 Ratings
🗓️ 24 April 2021
⏱️ 57 minutes
🧾️ Download transcript
Summary
At the same time mortgage lenders have indulged in a flight to safety, canning the vast majority of 95 per cent loan-to-value mortgages and bumping up the gap between rates on 90 per cent mortgages and those for borrowers with more equity.
Once more into the breach has stepped the Government, with taxpayer aid for banks and building societies to offer more 5 per cent deposit mortgages.
But is this a wise move? Should we stop meddling in the mortgage and property market, as short-term assistance ends up meaning long-term pain as more credit is extended and house prices climb ever higher?
And could it be that while the 95 per cent mortgage push is the wrong move at the national economic level, on a personal level taking one might prove a good move for some, who could end up paying less than they do in rent.
On this week's podcast, Georgie Frost, Lee Boyce and Simon Lambert discuss the 95 per cent mortgages, the rise in house prices and whether buy-to-let is still a good investment.
Also this week, the lowdown on the Barclaycard customer service meltdown as long-standing customers see their credit limits slashed.
And finally, you want a shed-office (aka a shoffice) to work in down the bottom of the garden, but can you power it with solar panels?
Transcript
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| 0:00.0 | Welcome to This Is Money Podcast. I'm Georgie Frost and alongside me and editor Simon Lambert today is Assistant |
| 0:05.5 | Elisa Lee Boyce. And coming up, the government scheme to help those with low deposits buyer home is up and running. |
| 0:11.3 | Nationwide on board, but they have addressed a big issue with the scheme by upping the amount that first-time buyers can borrow to 5.5% of their salary, 20% more than most, which not a bad thing, |
| 0:23.2 | given official figures showing house prices are up almost 9% in a year, the fastest rise since |
| 0:28.3 | 2014. While prices are going great guns, we ask if by to let is still a good investment. |
| 0:34.8 | Also today, we have more on Barclay card slashing of credit limits. |
| 0:38.8 | Simon has discovered what his is now. And finally, can we get any more peak lockdown? Can I |
| 0:45.1 | stick solar panels on my show office? Don't forget you step today with all the latest breaking |
| 0:50.3 | money news just to go to this ismoney.com.com.uk or download the app. But first, the government's |
| 0:55.6 | new 95% mortgage guarantee scheme launched this week. Now, it's aimed at increasing the number of |
| 1:00.5 | deals available to those who have little in the way of a deposit or have limited equity. Now, one of the |
| 1:05.6 | big problems, the first-time buyers especially, is the low loan to income ratio that most |
| 1:10.7 | lenders will offer |
| 1:12.2 | upsteps nationwide, who are not taking part in the government scheme. |
| 1:17.5 | They say they're not ready to offer 95% mortgages, but are offering their own helping hand |
| 1:23.2 | to those wanting to get onto the property ladder. |
| 1:25.7 | But first of all, Lee, the government's new scheme announced in the budget by Rishi Sunak, |
| 1:31.9 | what is it and what does it hope to achieve? |
| 1:35.0 | Hi, Georgie. |
| 1:35.4 | It's more government mortgage market meddling, I would say. |
| 1:40.3 | It's basically what it says on the tin. |
| 1:41.9 | You know, it's for basically uh buyers who who want to get |
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