In this solo video, the speaker warns viewers about a common mortgage industry practice: front‑loading early mortgage payments with interest, which means borrowers pay mostly interest in the first decade or two. He argues that because current residential mortgages can be obtained at around 4% and the stock market historically returns 8‑11% over the long term, it is financially superior to take an interest‑only mortgage, keep monthly payments low, and invest the saved cash in equities or additional property. He explains that inflation erodes the real value of debt, effectively paying down the mortgage for the borrower, and that property values tend to rise substantially over 30‑year horizons, further reducing the real burden. By leveraging the saved cash to acquire a portfolio of rental properties, one can generate passive income that covers the mortgage, making the home effectively free. He critiques the conventional wisdom that early mortgage repayment is the path to retirement, labeling it outdated and potentially detrimental to wealth building. Throughout, he promotes his self‑education platform, Money.school, citing his personal success (multi‑millionaire by 31, 345 rental units) and offering a low‑cost subscription and a 3‑hour live masterclass on building an information business. The video blends financial advice, critique of traditional education, and a sales pitch for his courses.
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Beware this mortgage company trick. Most people don't know this is how mortgage companies make a hell of a lot of money out of you. It's devious, but it's also smart, and I get why they do it. Now, um, I don't believe you should be in a rush to pay your mortgage off early, and one of the reasons is this trick that mortgage companies play on you. Now, reason number 1 you shouldn't pay off your mortgage early is because right now you can get a mortgage in 4% on a residential. If you've got an interest-only mortgage, then your monthly payments are going to be the lowest that they can be. And then instead of trying to pay your mortgage off or overpay, you can actually put the money in the stock market, which is getting, what, 11% at the moment? Not necessarily forever, but long-term averages, you've got to be safe at about 8%. So it's costing you 4% to get a mortgage. You could be getting an 8% return in the stock market. Or if you put that money into property and then you leverage it up, you could have an asset base of investment properties that could pay you £1,500 a month in passive income. And then that pays off your home mortgage and then that mortgage becomes free. So there's a lot, there's other reasons. I like, um, inflation pays down your mortgage for you. Because inflation reduces the value of money, but it also reduces the value of debt. So any debt you have is getting paid down with inflation. So, um, you have a mortgage, it's getting paid down by inflation. The government are literally paying off your debt for you. But here's the sneaky freaking tricks that the mortgage companies play on you, and you need to know this. So the mortgage companies want to get maximum amount of money from you. Of course, I don't blame them for that. That's their business. You are their customer or consumer. So, that's their behavior. And if you get a mortgage with mortgage company A, and they think or know that mortgage company B might come around 3, 5, 10 years down the line and offer you a better deal and you might move to them, they're in a race to get as much money out of you as possible. So, they frontload the mortgages, which means in the first few years, You're not paying off half interest, half capital repayment. You're paying off nearly all interest. So only until you get to year 20 or 23 or 25 are you paying off most of your mortgage. In the early years, you're only paying off interest, or mostly, which means you think you're 5 years in, well, I must have paid off a fifth of my mortgage, and you paid off hardly any of your mortgage. And this isn't something that you're taught in school. This isn't something that most people know. This is just a little financial trick that they play, which is very clever and somewhat devious. And so that's why it's probably not right for you. Of course it depends, but it's probably not right for you to have a repayment mortgage. Properties go up in value, what, they double every 12 or 15 years, something like that. So in 30 years it's gone from £500,000 to £1 million to £2 million, but your mortgage is still £500,000, of course, if you haven't paid it off. But inflation has turned that £500,000 into relatively maybe £200,000. So in real terms of today's money, it's worth a lot less. And of course you've got all these masses of equity which can easily pay it off. And all the money you didn't pay on the repayment mortgage for all those years, you could have gone and built your property portfolio of 10 properties that's paying you thousands a month in income, which pays your mortgage, which makes it free. And because banks are going to come along going, better rate, better rate, every 2 or 3 or 5 years, as soon as you can get a new deal, you're going to go and get a new deal, which means you might end up never paying off your mortgage anyway, which really means therefore this, oh, paying off your mortgage is the dream retirement, is outdated. Doesn't get you the best return. It's not the best leverage. It probably make you broke and probably won't make you rich. So I just wanted to let you know that devious little trick that the mortgage companies do, which is also smart and I get it. And that is that you're paying nearly all interest off at the start and you'll probably remortgage later anyway. So you might as well just have an interest-only mortgage. You might as well reinvest the, the money you've saved by not paying off a mortgage that you're actually not paying off and build a portfolio of assets that you can retire from the income on and that can pay your house mortgage and make your house free. Now, this is not taught in school. Of course it's not taught in school because if you knew this, then the banks would make a lot less money out of you and you would make a lot more money. So if you like these kind of tips, I recommend you join money.school because there's hundreds of hours Of courses, masterclasses, resources, tools, tricks, and tips just like this to help you start and scale a business, make, manage, and multiply money, and build multiple streams of recurring income. Costs less than 50p a day to join. Um, it's— I spend more on coffee in 2 days than it costs to be a, a, a month on money.school. A degree will cost you— well, this is about 0.1% of the cost of a degree in the same timeframe. But you're learning stuff that actually will help you become wealthy and build personal wealth and finances. Because I, I went to university and it did nothing for me, and I've never used it again, and I got 50 grand in debt going. Um, now I'm a multi-millionaire. I became a multi-millionaire by age 31. I'm now 46, and I've got 345 properties in my, um, rental portfolio of units. So I'm doing all right. So the traditional education didn't even make me a living. Self-education made me a fortune. I'm putting all of this into money.school. So the link is money.school. Just simply go right now and type in money.school. I've actually got a bonus, um, that I only just decided to do a couple of days ago, which is I'm doing a 3-hour live masterclass on how to build an information business from scratch. The lowest cost business to start in 2025 and the highest speed of growth business I know of in 2025 and highest profit margin business that I know of in 2025. And of course, that could include AI, by the way. I'm actually doing a 3-hour one-off masterclass. I just decided to do this. So if you join money.school right now, then, um, you can gain access to that too, as well as a 3-hour money mastery series on how to master money in the different stages of wealth. I actually did that for one of the biggest influencers in the world, recorded that It's a path. Shaking your head at me. It's a path. It's a path. You know, it's a path where you walk and you got, you got about this close before you dinged me and I just jumped because I was scared. I'm an idiot. Have a good day on your bike on this path. All I did was jump because it scared me. Have a good day. Anyway, hopefully that's given you time to join money.school. Apparently I'm a pussy because it made me jump because someone came up behind me on their bike on a path. Um, anyway, good morning. Hilarious. Um, just trying to get some peace and trying to help you. Um, yeah, so for what— by the way, you can put Money School through your business. Um, you can get— claim the tax back. So really it costs a couple of coffees a month net-net. And, um, it's basically, uh, I'm challenging the, the money system. And, you know, I want to make sure that you're getting better financial education and knowledge because my vision is to help as many people on this planet get better financial knowledge. And I just don't think you're given access to that in schools, hence why I've got money.school here. So if you'd like to learn all the tools and tricks that the real-life wealthy people who probably didn't make their money from going to university, because really that just teaches you to get a job, I recommend you join money.school. So the link is money.school. Let me know what you think about this cheeky little trick the mortgage companies play on you. Um, or front-loading all the interest. Let me know what you think about not paying your mortgage off and some of the tips I gave you in the video. Really appreciate you, and remember, if you don't risk anything, you risk everything.
