In the ever increasing house price market it is becoming more difficult for first time buyers to take that important first leap on to the property market. As operators of website Mortgage Place we are constantly looking to provide help and information to anyone looking or thinking about applying for their first time mortgage. Our 5 Top Tips are: 1. Shop around! There are so many lenders out there, with different mortgage rates, different mortgage deals and different contract options. Most will tempt you with some kind of offer when beginning your mortgage, but it's important to choose the right mortgage that will not only help you now, but help you long term too. If you are struggling to make sense of the termonology speak to an independent mortgage advisor. 2. When calculating how much you can afford be realistic. Most lenders now can offer up to four times a single salary or three and a half times joined salaries - but can depend on lender. Some lenders also take in to consideration incomings and outgoings to prove you are able to pay back the repayments. 3. Your desired location or town may be expensive, but by looking for properties just a few miles outside a main town perimeter its possible to save 20% on property prices. This alone could lead to lower mortgage payments, or enable you to buy a property with more land, more bedrooms, better features etc... 4. Interest only mortgages are also an option. Always look carefully and fully in to this option and weigh up all pros and cons. An interest only mortgage simply means you pay back just the interest on the debt - the debt remains in full until the term of the mortgage is up. At this point you pay back the debt in full. Although this can be very appealing as it helps keeps the cost of a mortgage low, you will need to plan a budget and long term projection on how you will clear the debt once the term is up. 5. When looking for a property it can be a very good idea to take along with you a friend or family member with their own home. They can often add insight based on their own experiences that you may not spot. There are many options now for first time buyers. In part this really needed to come in as a necessity due to the increase in property prices across the UK, but increased competition has led to better and longer offers / deals. |
