First Time buyer Mortgage
First Time Buyer Mortgage
Now is a very good time to start looking for a property to get yourself on the property ladder because house prices have fallen and you could be well positioned to get a very good deal. Furthermore you may be able to get more house for your money than you could have done a year or so ago. A few tips!
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However, you need to get a mortgage and lenders are being pretty picky about whom they lend to and you need to consider the following:-
• Ask questions. Are there tie-ins, what fees do you have to pay, how much can you borrow etc?
• Try to get as large a deposit as you can (can your parents help you out?) as this will help you get a better deal at a lower interest rate. Anything considered slightly risky by the lenders, including high LTV (loan to value) will go against you.
• Don’t make multiple applications to lenders. If each lender does a credit search this will affect your credit rating and possibly preclude you from some of the more attractive deals and end up costing you money.
• Don’t borrow more than you need to and keep within your means (the most important factor being that you do not overstretch yourself on the mortgage payments).
• Resist the temptation of going for any ‘incentives’ like a cash back or low start mortgage. The banks, building societies and lenders are not charities and these incentives are there to lure you into ‘buying’ their products and inevitably this will cost you in the long term.
• A repayment mortgage is always a better option than an interest only mortgage. Although an interest only mortgage means lower monthly payments how are you going to pay off the loan at the end of the term?
