Best First Time Buyer Mortgage Deals

Best First Time Buyer Mortgage Deals

Couple  The time has come for you to buy a house, but for a first time buyer, the housing market can be frightening and confusing. Unethical lenders may try to ensnare you with high interest rates and a loan that will have you paying for years. Many houses are priced out of the range affordable by first time buyers. The market for mortgage loans fluctuates every year, the interest rates rising and falling without apparent rhyme or reason. All these things make finding a good deal on a house difficult.

A first time buyer should consider a number of factors before going to purchase a property, such as how much they will be permitted to borrow, how much they can afford to pay per month, the initial cash outlay for fees and deposit, and what kind of mortgage they ought to use. A mortgage broker, who will act as an intermediary to find you the right mortgage, can help immensely to ease this process.

It can be dangerous to borrow too much money to buy a house, no matter how tempting the idea of home ownership is. The problem of negative equity is when your mortgage is worth more than your house, is still a danger. Many first time buyers consider only the monthly payment when they sign up for a mortgage. It also is important to look closely at the full amount you will be paying, and the length of time it will take to repay. Some kind of deposit is normally required, as well. Though there are a few lender who will offer a mortgage for 100% of the price of your house, these are rare, and will ensure a long payment process. It is best to have at least 5% of the purchase price. If you have 10% or more, you can secure a better deal on your mortgage.

There are many different types of mortgage that can be chosen. These include the fixed rate mortgage – with an unvarying interest rate over the life of the loan, the adjustable rate mortgage is one where the interest rate is periodically adjusted based on a index, and the interest-only loan is where for a period of time, the buyer pays only the interest on the loan, then must begin making payments on the principal. These last two types can be tempting to the first time buyer with little income, but can result in more money paid out over the lifetime of the mortgage. An adjustable rate mortgage can be the better deal if interest rates continue to fall, but worse if they rise. Interest only loans permit a buyer who will be in better financial shape in a few years to get a foothold in the housing market. The downside is that the principal will be untouched for those years.

With careful planning and consideration, the housing market need not be frightening or daunting to the first time buyer. All that is needed is a good assessment of your needs and situation.

First Time Buyers In The UK

First Time Buyers In The UK

First time buyers (FTB’s) in the UK can find buying their first home both confusing and expensive.
This site was put together as a support mechanism and somewhere you can always come to for help and advice on your first purchase.
There are many factors you, as a first-time buyer will need to consider, before purchasing your first property, such as how much you will be able to borrow, how much you can afford to pay each month.  You will also need to calculate how much initial cash you will need for surveyor fees, stamp duty, solicitor fees and a deposit and consider which sort of mortgage you should use and how you should repay it.  These and many more factors are discussed across this site.  


As a UK First Time Buyer…

As a UK first time buyer you are amost desirable to a house seller because you don’t have another house to sell before you can purchase and as such will not be involved in a house chain. This makes the sale quicker and less complicated for all involved.

There are also higher loan to value mortgages available to you as a UK first time buyer, which means you are able to borrow more than any other type of mortgage borrower.

You might be getting plenty of mixed messages at the moment from the banks and the media about house prices and mortgages but our advice would be to turn off the noise and focus on your individual situation and how you can best go about purchasing your first home.


First Time buyer mortgages in the UK…

First time buyer mortgages in the UK are in their thousands so it’s imperative you do not just agree to the first mortgage presented to you.
There are a vast array of mortgages out there for the first time buyer. To help you with finding the right one for you, it would be a good idea to obtain the services of a mortgage broker.
Mortgage brokers must be authorised by the Financial Services Authority (FSA) or must be agents for authorised firms.

The Best first time buyer mortgage deals

The best first time buyer deals will normally be available to the first time buyers with the best credit rating and credit history. You’ll also find the best mortgage deals being offered to the first time buyers who have larger deposits in ratio to the purchase price of the property and the amount they are looking to borrow.

Saying this it doesn’t mean that there are not good mortgage deals out there if you haven’t been an A* student with your finances. You might have to shop a little harder or look at alternatives.

Alternatives to traditional first time buyer mortgages

There are lots of alternatives to traditional FTB mortgages. Perhaps you haven't managed to save a decent deposit yet, or maybe you're worried you might not be able to afford a mortgage on your income alone. Even if this is the case, there are options open to you. This including government schemes for first time buyers and key workers with affordability concerns, guarantor mortgages, sharing a mortgage or even having no mortgage at all for the first few years on a rent to own scheme.