Some years ago, after Northern Rock famously hit the “rocks” with their 125% mortgages etc. the UK government proudly stated:
“We will outlaw 100% and over mortgages as this is what has caused this mess”
I did chuckle to myself. The day 100% financing stops is the day the Marxist/Communist Political Party comes in to power i.e. VERY UNLIKELY!
I was with a very successful investor the other day and he is getting his clients 100% mortgages. It works like this:
The lender lends you 95%
The lender allows you a 5% gifted deposit
Effectively all you have to find is the valuation costs and solicitor costs. As we all know this should cost way less than £1,000 but assume £1,000.
This is the bank’s “sticking two fingers up” moment to the government, FSA, George Osborne and whoever else trying to stop the party. The party of buying lots of property with hardly any of your own capital.
I have yet to see a 100%+ mortgage yet but I can feel it in my water……IT IS COMING. Probably not from Northern Rock but you never know. If it is I think I will fall on the floor laughing. I can just imagine hearing it on a Radio 1 bulletin.
So thank yourself for living in a country with a free market policy. Give yourself an even bigger thanks if you start getting some of this finance.
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