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Are 95% mortgages a good deal?

Money Saving Expert Martin Lewis explained the mortgage guarantee scheme to 5 Live's Nihal Arthanayake.
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"Don't favour a mortgage just because it's part of the scheme," he said.

Martin said the mortgage guarantee scheme is not set up for individuals.

"All the ... scheme does is give lenders some surety so they can offer more mortgages but it doesn't change the borrowing for a borrower.
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鈥淲e鈥檙e a very aspirational 鈥業 want to buy a house鈥� country. We鈥檝e been fed a diet of property porn on our television for the last 20 or 30 years...Some of those shows advise people to push to the absolute maximum to borrow all you can.鈥�

Martin said he doesn't think it's right to push people to their financial limit for a house.

"I feel these 5% mortgages are pushing into that direction... I worry renting is seen as a dirty word in this country," he said.

If buying a house makes the most financial sense for you Martin's mortgage advice is to "pick solely on which has the best terms".

This clip is originally from Nihal Arthanayake on Wednesday 21 April 2021

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