The Truth About UK Mortgages: Is It ACTUALLY Worth It?

[@MrNkyphil]

I am team buy. I see it as a good investment with a good return later. But with renting, you get nothing back & you could be paying more in renting.

[@ChideraPeters]

Glad you’ve figured out which is a better decision for you 👏🏽✨

[@dallashaj4711]

Property is not the only investment available considering tax to pay if you decide to sell. That down payment can get you other tax-free investments like gold, and you can sell them so fast, unlike a property, which can take 2 months or more on the market to sell. In the UK, every new house roof comes with 25 years of life span, so after 25 years, be ready to replace the roof either with your savings, your pension, or loan.

[@mimim875]

​@@dallashaj4711in addition in your old age we (social care) will sell your house to pay for your care regardless of you having children. It used to be a good investment but not anymore

[@FA9082]

lol you are exactly the sort of lemming mortgages we're created for 😂 Renting is ALWAYS better than buying, assuming you invest the deposit you would have put into the house into the stock market. Just stick in the S&P 500, come back in 10 years and when you see how much its grown by you will see very clearly it would have been incredibly stupid to buy a house 😂

[@NnamdiNw]

⁠@@FA9082not always true. Your assumption is based on buying a house that’s not below market value. If you buy it below market value you are already quite up.

[@TomsMiguel]

I'd say first of all, The word "mortgage" is called a "death pledge" because it comes from the Old French words mort, meaning "death", and gage, meaning "pledge". The pledge is considered "dead" when the loan is paid off or the borrower can't meet the terms of the agreement and with that being said, I'd advice myself not to Mortgage a house with low initial deposit.... I'd save 40-50% of the cost of the house and mortgage it and use the remortgaging tactics if i don't have the money to buy the house out rightly(which is still the best way to own a house if one is financially buoyant)... I don't advice mortgage... but it's good debt for those who aren't super rich financially though and do not have the capacity to buy things once..

[@ChideraPeters]

Thanks for this detailed explanation 👍🏽

[@eugenianweje]

I am team buy, We have successfully bought a house after 24 years old by selling our house at the right time,moving out of London, and therefore becoming mortgage free.

[@yemi5193]

I am still team buying because it’s an investment which in the long term after paying off you are left with a paid off house maybe when you retire unlike with renting, you continue to pay rent for life as long as you are alive.

[@ChideraPeters]

Agree with this 🙌🏽

[@dallashaj4711]

Mortgage is a fancy word for renting as well bcus banks own the house till you fully pay the money, let say 20 years or 30 years. Secondly, buying a house means you are committed to spending more of your earnings or salary on things like house insurance and rep, irs whereas atenantnant , your landlord is responsible for all that not you. Thirdly, you call it investment, so when you sell the house in the future and pay capital gain tax on, it may be 32% to 40% of your profit on the property, are you going to be living outside or renting? And if you die without a will Government take over the house, or if you will it to your kids or wife, they have to pay 40% inheritance tax of the value of the property. So, if you die before completing the mortgage payment and will the property to your family, they have no option but to sell it, pay the inheritance tax, and the mortgage outstanding balance and look for somewhere else to leave or the have to look for a way to pay those money. It's all a scam

[@olanosergio]

To an extent, you could call it renting. But you could also look at purchasing the property as somewhere for your kids or even grandkids to call home long-term. Making their life easier going forward. At home, they will be able to save most of their earning to purchase their own in the future

[@dallashaj4711]

@olanosergio what if your kids want to work abroad or join the military and stay in the barrack? Moreover, if your kids decide to buy their own property, leaving with you in a rented house or owned house makes no difference as they can start working at age 16 and save, and once they turned 18 the employment make them qualify to buy their property and when going to uni they can choose a uni closer to home use their employment savings and over 12k a year maintenance loan as their deposite.

[@VincentGota-l7b]

Taking out a mortgage isn’t bad but manage your interest payments very well. If you can save £2000 per month towards your monthly mortgage payment, get a house on which monthly payments are like £1000-£1200 then use the remaining £1000-£800 as extra payments each month. This will significantly reduce the time period of making monthly payments and the interest costs too.

[@ChideraPeters]

So true 🙌🏽

[@odekalebamidele4668]

Team buy also seem good because you can take out equity to invest in other areas. I have taken out equity and bought another 2 bedroom which I rented out and is now helping with paying all mortgages

[@ChideraPeters]

Oh this is amazing! I hope I’m able to do this some day- thanks for sharing 🙌🏽✨

[@vannyakp6617]

Smart move

[@samuelgbadeyan3796]

This is very informative, thank you so much for putting out fantastic content.

[@ChideraPeters]

You’re most welcome. Do make sure to like the video if you haven’t already - thank you!🙏🏽

[@ox3965]

Is mortgage a scam? ahhmm, Yes it is, so pay it off quickly. But the bigger scam, is 40% inheritance tax, after you paid all this interest 😏

[@danielgbenga2803]

You also forgot to add that a major part of the monthly payment will go towards the interest, especially for the first 5 to 10years.The idea of paying almost double of what you borrow is scary. Mortgage is good, but don't over stretch yourself.

[@allstarmayor]

But you'll pay more on rent during that period and won't end up with any any eqiuty on the house you rented

[@ChideraPeters]

Yeah this is true 👍🏽

[@oluseyedavidalo2420]

It's amazing how much people are being brainwashed economically. What if I let you know there are people who never pay house rent or mortgage, but live in nice homes of theirs? It's all about where you find yourself and your perspectives about life itself.

[@jeffreynanatakyicollins101]

Mortgages are a calculated risk I’d say it’s more beneficial than non beneficial. Take me for instance, I’ve in the process of buying my council flat via right to buy which would give me £136,400 discount off the £250,000 which is my property value. I would have built up equity from the start, borrow a lesser term amount and term of the mortgage and can remortgage to buy a second property at any time if I choose to . It just depends on personal circumstances and how you manage your mortgage by looking at deals

[@ChideraPeters]

Love this for you!

[@theepaulette]

What about shared ownership in your opinion is it worth it

[@GistwithOdy]

Try to make overpayment that will not stress you. once you're able to bring it down by 5 years. The percentage going to the interest will reduce. It worked for me.

[@ChideraPeters]

Thanks for sharing this ♥️

[@UgommaUjomu]

Hi Is buying your first home in personal name or liability company which is better?? I hope to hear from you please explain what you could have done differently when you bought your first house I have watched all your videos you are doing well sis Good job 👍

[@ChideraPeters]

Hi if it’s a residential property ie one you’d live in then you can buy in your personal name - so you can use tools like a Lifetime ISA for first time buyers. If it’s an investment property ie one you’d live want to rent out or use for AirBnB or Flip then it’ll be better to buy it with a Limited liability company I hope this helps

[@paulineforrester3963]

Team Buy: It's a long-term investment. Overpayment helps to cut costs. Aim to be mortgage free in the shortest time possible.

[@ChideraPeters]

Exactly - that’s my plan too 🙌🏽

[@Foltza]

Buy all the way

[@ChideraPeters]

🙌🏽

[@chicecil7240]

Girl. Your house is beautiful. 😍

[@ChideraPeters]

Aww thank youuuuu

[@chizobasalome8967]

Team buy, i am in the process of getting my first home. Sometimes, i do have mixed feelings about it.

[@ChideraPeters]

All the best with your house! What mixed feelings do you have?

[@chizobasalome8967]

@ChideraPeters new build or build

[@abokoeguale9783]

Mortgages are NOT scam.. I love the tax benefits, refinancing, and appreciation over the years... Better than owning thise useless and Valueless properties in Nigeria...

[@ChideraPeters]

lol 😂 Nigeria didn’t have to collect stray bullet

[@thefifthdon1]

My overpayments are over 100% of my monthly mortgage rate and if stick to the current program, I can payoff a 25 year mortgage in 6 years. Sounds nice but it’s it annoying when you saving peanuts 🥜

[@ChideraPeters]

Omg that’s amazing. I’m guessing your interest rate must be quite low for the repayment to be manageable

[@doyinaremu1948]

Correction… the value of properties double every 10 years… if you have a £300k property today will be £600k in 10 years due to inflation.

[@johnnyofori]

The property value may also reduce

[@ChideraPeters]

Yeah I mentioned that it increases every ten years. It’s not in every case that it will be an exact double

[@abokoeguale9783]

​@@johnnyoforiNever

[@abokoeguale9783]

​@ChideraPeters it still appreciates overtime.... in the USA it's 5% appreciation per year... 10yrs is 50% appreciation

[@ezinneerhirhieneeukaogo1439]

And your mortgage actually makes you pay £600k( via the interest )not the £300k advertised😊

[@BluSoulBruva01]

The term Mortgage is French, which literally means Dead pledge, debt til dead.

[@shepherdkamumvuri1662]

Mayb i'm wrong. I thought 5% of 270 000 is 13500 which takes the grand total to 283 500? How did you come up with 473 000? How is this 5% interest calculated?

[@ChideraPeters]

It’s 5% every year for 25 years for what you owe. Not a one time 5% calculation

[@ModupeAdebiyi]

Here for all the tea😊

[@ChideraPeters]

lol that was super quick!😂 Thanks for showing up. You’ll get all the tea

[@Edgenote50KO]

Mortgage is a scam I was looking into a mortgage for a 200k house after I pay back the mortgage i end up paying 349k so even if i wanted to sell the house i would never get the money for it i would end up losing money Its terrible already but im afriad The housing crisis will get alot worse Houses are only an asset if its Making you money If its not making you money its a liability And remember when you own the property you will be responsible for all the repairs plenty of issues with new builds

[@ChideraPeters]

I see, glad you’ve figured out what works for you and thanks for sharing

[@Neddie2k]

You have the option to either buy or rent.

[@olanosergio]

Do u know anything about HMO, by any chance.

[@ChideraPeters]

Yeah House of Multiple Occupancy, what exactly do you want to know about it 🤔

[@olanosergio]

I had a property I am considering. Converting to an HMO, but wondered if it's better to do in my name or a PLC.

[@k.o5941]

It's best to do it through a PLC because you'll end up paying income tax if it's in your name and will affect your income if you are an employee. Rent collection are classed as income and are subject to income tax. Look into this properly because some have found out that property may not be as profitable as they thought when they started paying income tax on rents. Good luck🤞

[@olanosergio]

@k.o5941 Thanks for the advice, much appreciated.

[@olubunmiolaniyi2053]

Early repayment charges

[@ChideraPeters]

Most mortgages allow you to 10% of total amount owed each year without repayment charges and then there are mortgages that don’t have the early repayment charge

[@richmindset1259]

Life isn’t black or white it’s just based on your situation buying gives stability which is important when u have kids and family whilst renting is flexible but the landlord can kick you out any time

[@TochukwuOkafor-td1wh]

TEAM RENT!!! All day ❤

[@ChideraPeters]

That’s great!✨✨

[@josephhall9307]

Mortgage rates for a £300,000 loan are probably 10% or higher in your own country.

[@ChideraPeters]

Lol and which is my own country?

[@josephhall9307]

@ChideraPeters You obviously weren't born or did not grow up in the UK based on your accent. Plus, only someone not used to living in a developed country would create a video asking whether mortgages are a scam. Other Africans fresh in the country create KZbin videos along a similar vein, complaining, for example, about paying a lot of tax. Yet African countries are full of unpaved roads where vehicles get stuck in the red mud when it rains.

[@jackrobinson9940]

What are you talking about josep.. this is our country.. us black and asain people run this country now. Ur own government don't like you! Go and do one

[@temiaghedo4754]

I’m definitely Team Buy though I’m renting at the moment

[@ChideraPeters]

🙌🏽 some day soon ✨

[@temiaghedo4754]

@ Amen o

[@iamprideless]

Second here ❤❤❤❤

[@ChideraPeters]

As always, thanks for showing up

[@oluwabusuyi3896]

The makeup looks great 😊

[@ChideraPeters]

Aww thank you ☺️