What can you buy
today that will almost certainly go up in price by at least 10% in the next few
months? A stock, property or gold? No.
Purpose of
investing
Inflation is pushing
up the price of almost everything you buy in the supermarket on a daily basis,
from food to household cleaning items.
What is the real
rate of inflation?
Proctor and Gamble,
one of the largest consumer goods companies in the world with revenues of $76
billion, has announced that it will be increasing the price of its huge range
of staple household goods, from Ariel and Crest to Gillette razons and Pampers
nappies, due to higher shipping and raw material costs.
Stock up now and you
will save 100 times more that you are earning on bank deposits.
Stamps story…
Taxes will increase
to pay for multi-billion green economic reset
Mortgage lending will
become harder on ‘non-green’ or poorly insulated properties, as the government
forces lenders to abide by its green agenda more akin to a socialist party.
Financial markets and stocks and shares could
see a “sharp downturn” with lower expectation of an early economic recovery
from the lockdown the Bank of England predicted last week.
The QE money printing party, which have
artificially fuelled property and stock markets to record highs, must eventually
end.
How can you protect yourself and profit from
a stock market or property crash when the bubble bursts?
Fortunes have always been lost and made
during a stock and property market downturn.
Even if you do not directly invest in the
stock market or property your pension fund manager may be doing so on your
behalf. Check with your administrator or financial adviser.
The answer is to learn about investing and
become more financially aware.
Keep
watching or listening to my free podcasts on iTunes and subscribe to my YouTube channel for regular financial news and updates.
If you would like to learn more about investing and managing
your money, become a professional property investor, or would like tobe financially free without working any harder, watch
this free on demand training.
I
will give a special free gift which can help you to immediately transform your
finances when you attend the online training.
The UK government has announced the launch of a new 95%
mortgage scheme.
·95% mortgage guarantee launches today, available
on high streets across the country
·Scheme part of a range of ownership options to
help make home ownership a reality
·New figures show demand for home ownership has
soared during lockdown, with nearly 80% of private renters now saving for a
deposit
A new government-backed mortgage
guarantee scheme, announced in the March Budget, to help people with 5%
deposits get on to the housing ladder will be available to lenders from today
19 April 2021, a spokesperson confirmed.
The scheme will help BOTH first time buyers AND current
homeowners obtain a mortgage with a 5% deposit to buy a house of up to £600,000
– offering a route to home ownership to those with low deposits.
The government is essentially giving lenders the guarantee they
need to provide mortgages that cover the other 95%, subject to the usual
affordability checks. In the past, insurance companies provided this guarantee
for a premium.
The scheme is now available from major high street lenders
across the country today, including Lloyds, Santander, Barclays, HSBC and
NatWest and Virgin Money following next month.
In 2019, the government made a pledge to build 300,000 new
and attractive homes a year with an investment of over £12 billion in
affordable housing over the next 5 years – the largest investment in a decade.
Since 2010, more than 687,000 households have been helped
into home ownership through government schemes, but when asked, 69% of private
renters and 63% of those living at home who had looked into a mortgage said
they cannot find many mortgages with a low deposit.
The guarantee scheme is one of a range of flexible home
ownership options available including:
·Help to Buy
·Shared Ownership
·First Homes Scheme.
Figures show that the number of mortgage approvals for house
purchases in January 2021 was 99,000 – a 40% increase on January 2020.
The government has helped over 685,000 households to purchase
a home since 2010 through government backed schemes including Help to Buy and
Right to Buy.
Taxpayers will bail out banks if loans default and they
lose money
The higher the loan-to-value, the higher the risk for
lenders, as borrowers have less skin in the game and can walk away in the event
of a property crash or negative equity.
The mortgage
guarantee scheme provides lenders with the option to purchase a guarantee
on the top-slice of the mortgage, which means the government will compensate
the mortgage lender for a portion of any net losses incurred in the event of
repossession. In other words, the guarantee applies down to 80% of the purchase
value of the guaranteed property.
The guarantee will be valid for up to 7 years after the
mortgage has started and evidence shows that loans are unlikely to default
after this time.
However, the scheme is intended as a temporary measure and
will be open for new mortgage applications from April 2021 to December 2022.
Lenders can still pursue you for losses after you have
been repossessed if they do not get their money back on a ‘forced sale’ –
usually at auction.
The government said the current scarcity of high
loan-to-value lending is a response to the pandemic rather than a symptom of a
longer-term structural change in the mortgage market.
The government will review the scheme towards the planned
end date to determine whether extending the period of eligibility for new
mortgages would continue to deliver benefits for prospective buyers.
The stamp
duty holiday comes to an end in June, prompting fears of a slowdown in the
property market. The new guarantee scheme could push prices to new record highs
making it more difficult for first-time-buyers to get on the property
ladder.
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