100% CONfidence?

23rd May 2016 by Vincent Wong

100% CONfidence?

So, The Sunday Times reports today there is a new level of confidence in the (property) market. The sun is shining, London has a new Mayor and Spring appears to have finally sprung. In the last two weeks alone, some lenders have introduced 100% mortgage products into the marketplace and Nationwide, the UK’s largest building society, upped the maximum age limit for mortgages from 75 to 85. But what does this mean in real terms?

Well firstly, anyone who understands the nature of market forces will accept that economic activity is cyclic. And that some lenders will appear to become more flexible when additional money is needed to keep the cogs of the financial system oiled. Our money keeps the system flowing, in the simplest of terms.

Secondly, whilst a 100% mortgage may prompt celebration, we should be mindful of the fact that a guarantor is always required (eg a parent). So automatically, quite a lot of people, the ones who probably need the 100% mortgage most, will be excluded from the application criteria as they won’t have a parent who is financially sound enough to guarantee the loan.

And thirdly, by upping the age limit for mortgages from 75 to 85, lenders are playing Russian Roulette with life expectancy. This may also impact upon IHT laws or taxes associated with death duties. If a mortgage isn’t paid off and an individual dies with three years’ left to pay on the mortgage, how will this pan out? Could it mean that mortgage companies will introduce a ‘new’ obligatory payment protection policy. And so the spiral (and the questions) continue.

And whilst I am one of the UK’s greatest advocates of individuals of any age stepping up onto the property ladder, I would encourage individuals to err on the side of caution when considering their financial options. The ultimate aim is to take control of a property and create a financial ‘asset’ rather than a ‘liability’. This is one of the fundamental principles I teach at Wealth Dragons’ training programmes.

I want individuals to think in a more lateral way about property acquisition and ownership. A mortgage is just one option. To find out more and to feel confident about your financial future, why not attend one of our training programmes over the Summer?    http://www.wealthdragons.com/events/

 

Photo source: The Sun.

Other Posts From Vince

A Beginner’s Guide to Credit Scores

29th July 2016 by Vincent Wong

I read an article in last Sunday’s The Sunday Times about credit score errors being on the rise. For those of you who are unfamiliar with credit scoring, particularly if you want to start to investing, here is an easy-to-remember (by using the acronym C.R.E.D.I.T.) summary on to how to get started, with a view … Continued

Wealth Dragons Academy Hall (Kenya)

30th March 2016 by Vincent Wong

I am often asked why I wanted to become wealthy (or as we say in industry speak, ‘financially free’). My answer is always simple: to create future stability for my family and to help others help themselves. For those who understand The Law of Reciprocity and The Law of Attraction, we should all give as … Continued

West Goes South

23rd February 2016 by Vincent Wong

West Goes South This week’s news agendas and social media feeds have been full of comment and opinion about Kanye West’s alleged $53 million debt. Kanye has even tweeted Mark Zuckerberg asking for a $1 billion investment into his business interests. So whilst the conspiracy theorists believe this may just be a sturdy marketing ploy … Continued

Important Petition for Investors

26th January 2016 by Vincent Wong

The following is a press release I put out recently. Please read and sign as soon as possible! International property expert and Executive Chairman of Wealth Dragons Limited, Vincent Wong, is urging British people to sign a petition to challenge a new law that will penalise UK private landlords by heavily reducing the expenses they … Continued