First Time Buyer Mortgages
So you have finally decided to either move out of your family home, out of the rented accommodation, or even just got married, then you are probably looking to get on the property ladder for the very first time.
Most first time buyers require a mortgage for that much appreciated stepping stone in life and to become a homeowner.
Buying or thinking of your first ever property can be quite daunting and may feel like you are entering into the unknown, with our guide and information we will help you understand the key stages involved of mortgages and find the best deal for your first time mortgage.
For those of you who need to understand the concept of a mortgage it may prove worthwhile if you read our section on what is a mortgage?
The mortgage market for first time buyers is huge; there are so many different places to go for your first time mortgage and so many varied deals to suit your specific personal circumstances.
Once you have decided that you require a mortgage then you need to decide on a number of key factors that will help you ensure the process is dealt with as smoothly as possible.
Mortgages and Deposit
Finance is one of the most important areas for you to think about. Do have a deposit to put towards the borrowing of the property of your dreams? It is important you have answers for this question as the actual mortgage product and the type of mortgage you may go for could depend on this. It is fair to say that if you have a deposit to put down when securing your first ever mortgage then it generally goes to say that the overall cost of your mortgage would be less in comparison to a 100% or 125% mortgage. These types of mortgages allow you to borrow equivalent or more than the purchase price of the home. Some first time buyers who do not have a deposit may opt for this particular type of mortgage.
Visit our 100 percent mortgages and 125 percent mortgages for more information.
How much can I borrow?
How much you can borrow for your first time mortgage will depend on a number of factors such as whether the mortgage will be based on one or 2 incomes.
Mortgage loan providers normally apply a multiplier effect on incomes to generate a borrowing amount.
Our mortgage calculator will help you with your mortgage calculations.
Where do I go for a first time mortgage?
A lot of people can give you advice on where to go for a mortgage but if it is your first time it is recommended you do a little of your own research to appreciate the market and especially understand some of the terminology that is used.
A visit to the high street will give you an opening into some
of the key products that you have access to via building societies
and banks. But depending on how much time you have for
research we doubt you will get to see every possible mortgage
provider.
Some people like to use a financial or mortgage
advisors who have specialist skills in offering mortgage advice
on products and related services. These days people can
find the best mortgage deal over the telephone or even the internet. Online
buying allows the customer to quickly tap into thousands of mortgage
products at the click of a button.
First Time Mortgage Buyer Tips
- Make sure all your paperwork is in order even before you go through the process of buying a house.
- Ensure you understand the types of mortgages that are available to you.
- Use reputable sources
- Don’t make any commitment to anyone until you understand what you are getting yourself into. Pay particular close attention to detail on the small print.
- Don’t tie yourself into a long term agreement. Quite often longer term agreements bear penalties if you need to break them.
- Account for other fees and costs in the process for example, solicitors, surveyors, deposits, moving costs etc.