In this video we're going to be talking about the potential Mortgage Collapse or the potential Mortgage crisis of 2020. You'll notice that a lot of lenders have been removing mortgage products from offer, why is this? are the banks in trouble and running out of money? Thats exactly what we're going to talk about today.
Background - 00:00 - 03:17
Due to the massive spike in unemployment, this could cause many people to default on their mortgage and lose their home, this will impact the banks profit as they wont generate profit from interest and might struggle to get their money back.
What about interest rates? - 03:17 - 04:23
Interest rates were recently cut in the UK and the US which has been immediately passed on as a savings rate cut, but, mortgage rates are increasing, not decreasing, as banks pull their products.
How does this differ from 2008? - 04:23 - 07:09
In 2008 banks suffered huge losses due to many bad loans and for taking large bets against these loans. The loans went bad so the banks lost billions and also had to pay out on bets against these loans.
Whats happening today? - 07:09 - 09:14
In 2020, the banks haven't been giving out NINJA loans and therefore the mortgages given are secure and therefore its unlikely that the banks are going to struggle as much as they did in 2008.
When will the products be bought back onto the market? - 09:14 - 11:21
I believe that these products will be bought back onto the market when the banks have less risk.
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The information in these videos shall not be construed as tax, legal, insurance, construction, engineering, health and safety, electrical or financial advice. IF stocks or companies are mentioned, Thomas MAY have an ownership interest in them -- DO NOT make buying or selling decisions based on Thomas' videos. If you need such advice, please contact a qualified accountant, solicitor, insurance agent, contractor/electrician/engineer/etc. or financial advisor.
This is not an advertisement of property for sale and shall not be construed as anything other than an opinion for entertainment purposes only.
Inspired by Graham Stephan, Meet Kevin, Shaf Rasul, Andrei Jikh, Nate O'Brien, The Credit Shifu and more
#HousingMarket #MortgageCollapse #Recession
Background - 00:00 - 03:17
Due to the massive spike in unemployment, this could cause many people to default on their mortgage and lose their home, this will impact the banks profit as they wont generate profit from interest and might struggle to get their money back.
What about interest rates? - 03:17 - 04:23
Interest rates were recently cut in the UK and the US which has been immediately passed on as a savings rate cut, but, mortgage rates are increasing, not decreasing, as banks pull their products.
How does this differ from 2008? - 04:23 - 07:09
In 2008 banks suffered huge losses due to many bad loans and for taking large bets against these loans. The loans went bad so the banks lost billions and also had to pay out on bets against these loans.
Whats happening today? - 07:09 - 09:14
In 2020, the banks haven't been giving out NINJA loans and therefore the mortgages given are secure and therefore its unlikely that the banks are going to struggle as much as they did in 2008.
When will the products be bought back onto the market? - 09:14 - 11:21
I believe that these products will be bought back onto the market when the banks have less risk.
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Instagram - ThomasJamesYT - https://instagram.com/thomasjamesyt
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Subscribe for more related content - https://youtube.com/c/ThomasJamesPropertyInvesting
The information in these videos shall not be construed as tax, legal, insurance, construction, engineering, health and safety, electrical or financial advice. IF stocks or companies are mentioned, Thomas MAY have an ownership interest in them -- DO NOT make buying or selling decisions based on Thomas' videos. If you need such advice, please contact a qualified accountant, solicitor, insurance agent, contractor/electrician/engineer/etc. or financial advisor.
This is not an advertisement of property for sale and shall not be construed as anything other than an opinion for entertainment purposes only.
Inspired by Graham Stephan, Meet Kevin, Shaf Rasul, Andrei Jikh, Nate O'Brien, The Credit Shifu and more
#HousingMarket #MortgageCollapse #Recession
Mortgages keep housing prices high. Stop buying houses you can’t afford. Rent, live within your means, invest invest invest, buy a house for CASH in 10 years.
Hi mate,
I really enjoyed that video! Especially your explanation on 08 crisis👍🏻
Another consideration do you think the banks could be cutting back on mortgage lending due to the amount bounce back loans and other Covid loans being given out?
Thus the banks have had to cut mortgage lending to reduce risk/ exposure?
It would be great to hear your thoughts!
All the best
Oh, don't you have a cute baby face? And your voice is so soft… Now I'm going to look for a similar video made by a woman, to get some actual facts
My mortgage term is now complete so am able to renew my mortgage. How do you think the market will go over the next few months? Am I best to get my mortgage sorted now or wait a few months??
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good job
If you think 2008 was bad, the defaults of business loans will be 10 x worse, nothing was fixed in 2008, if they don't allow the markets to detoxify then it could be the end of all paper fiat currencies, they are backed by nothing, some say the US will need to "print" 20 Trillion $ minimum to dig themselves out of the 12 year banking slow collapse from 2008,
Cash will be banned and we will be forced to go 100% digital, 100% traceable, each transaction charged a small fee, if you are a naughty protester they will put you balance to 0, it will be a wild ride and only a select few know what will happen, prepare by researching on You Tube, look at Bail in and fractional reserve banking not to mention the UK only has 3% of all deposits in paper money, so expect cash withdraw limits to be imposed, bank runs, bank failures, inter bank lending to freeze like in 2008 as no one knows which bank has the bad loans,
Technically when you give a bank your money it isn't yours any more, this is why they impose daily withdraw limits, so they speculate on the money markets with YOUR money, it goes poof oh well just go bankrupt and get bailed out by the tax payer, the law in the UK is no banker will ever go to prison, no matter how bad they f**k up, this is what they offer big banks to get their head offices to move to London.
It is so frustrating they keep moving the goalposts. I have just about got a 10% deposit in a cheap area of the UK and was looking at getting an AIP. When do you see us being able to get mortgages again with a 10% deposit?
The banks will never stop there practices. The houses are not going anywhere so the usurious banks can always take possession of the house. Usurious to the core.
Usurious to the core. Essentially, the usurious bankers do not believe in private ownership. Thank God for Islam. Usury is prohibited. Money must represent sweat, labour and product.
Your talking total crap buddy.. you need to get your FACTS right your just spounting worst case seniors. Anyone can quote worst case stuff. Even a weatherman can quote It may rain the weekend, it may even pour down, they may even be lighting it could also lead to flooding. OMG buddy get your Actual facts together and come up with Tangible information. … Oh by the way the Premiership starts back this weekend. Man Utd might win, the might draw or they might lose. If they loose, they could lose 1-0 it could even be 2-0 nil worst case scenario it could even be 8-0. They could even give away 2 penalties and even have players sent out. ( run video of a team losing 6-0 ) you sum up in the end by saying nobody knows and you say maybe, maybe, maybe, maybe …. you also say your not a financial adviser and your just a guy who makes youtube video.. uttlery pointless content.
Don't worry about banks balance sheets, they will always be bailed out.
This dude is a estate agent
Idiot @ 3.07. btw nothing new or intellectual either.
CDOs were renamed after the 2008 crash. There was $1.4 Trillion in CDOs in 2012 and $2.2 Trillion today. The new CDOs can be hedged just the same as in 2008.
CDOs became toxic due to a 1% rise in unemployment. A 6% rise in unemployment is expected in 2020. I am not saying the new CDOs are toxic but I can smell them festering from Portsmouth.
In 2008 the bank pumped £500 billion into the economy but that included buying the banks. This year they will pump £300 billion into the economy but will not have the banks to sell. We still owe £56 billion from 2008.
Historically, house prices have peaked and troughed. Only an idiot (or someone desperate to sell) would say we are not entering a massive trough right now. You can check every fact on line.
I was a Royal Marine and bought in 1990 and had to sell 1997. My wife was pregnant and I was drafted to Portsmouth. Somehow I got a new mortgage as my father in law gave us £10,000, we had savings and the services paid our moving costs. I bought a three bedroom terraced in Portsmouth. I lost 33% on the first house and never had the confidence to move again. Once bitten twice shy.
This is the perfect storm and personally I would never buy now unless I had a 35% discount as a minimum.
Great video pal
Makes me think I have another house going through at the minute should I leave it as a house to rent or turn it to a hmo
Brilliant vid really enjoyed that one!
Hi Tom we’re only at the very start with the mortgage forbearance and furlough scheme It will be 2021 before affects start to Rea There ugly head unless it’s a unbelievable deal I will not be buying Nothing until the risk is reflected in the price I will be a lot of landlords with nonpaying tenants the courts will be Completely blocked there will be some very difficult times for over leveraged landlords especially those who have gotten commercial valuations considerably above the bricks and mortar value you’re too young to truly understand a big recession my advice to you is save cash It will take 2 to 5 years to get to the bottom plenty of time to find a good deal?
Absolutely smashing it Tom. Congratulations on 1k! I’m sure you know im from the UK but i like how you also refer to the US, brilliant detail.
Banks have already brought back mortgage products they removed, also the banks that stopped doing 80% have slowly re started. I fundamentally disagree with this video as your essentially late with your comment. (as the products and rates are coming back)
Banks will allow negative and product switch to stop a catastrophe.
Excellent video. I wonder if we are going to see a huge drop in demand for HMOs and house shares as people look for single bed properties. Who wants to share with 6 people. Will this force landlords to put a lot of property up for sale and thereby increasing supply
Loving your YouTube channel. I would like to know when is the best time to invest money in property??? End of the year or wait till next year 2021???
Great video. Straight to the point.
Do you think there will be a mortgage collapse? Will the banks struggle? or will the tax payer have to bail out the big companies/banks again?