First Time Buyer Mortgages

It is a daunting prospect being a first-time buyer. It is probably the biggest financial transaction you will have to make in your life and it is natural that you should be apprehensive. It can also be very confusing as there are so many decisions to be made. So we have put together a few useful pieces of information which, we hope, will help you find the mortgage which is most suitable for you and your circumstances.

First of all, it is vital that you spend some time at the outset working out just how much you can afford to spend on your new mortgage before you even start to look at properties. Be realistic. Never over-estimate your current and potential capital. Our budget planner will help you. Having worked out your budget you then are faced with the next step of deciding which type of mortgage is best for you.

You might look in trepidation at the alternatives – tracker, flexible, discount, or link to your current account – and your head is in a whirl. Don’t worry. We will explain them all in simple terms which will make it clear which one will be to your advantage. Just bear in mind that what looks like a more expensive mortgage today may end up being more suitable for you. Make sure you know what happens after any special deal ends.

We are getting there. Now you can cast your eyes over our ‘how much can I borrow’ section which will work out for you what you can justifiably afford. At this stage it would be remiss of us not to point out the additional cost of protecting your mortgage. Carefully digest our mortgage protection section before you go ahead, otherwise you might find yourself exceeding your budget.

Another word of warning: as more people are finding it difficult to afford the big deposits required to take that first step on the property ladder, it is common for the mortgage advance to represent at least 90% of the property
value for first time buyers.

Many first time buyers prefer newly-built properties, not just because there are all new fittings and the property has not been lived in before, but also there is very little, if anything, to do but just move straight in. However, always make sure in such circumstances that the builder offers a buildings warranty scheme to protect you if any problems do arise with the new build.

Don’t forget about insurance costs. In the majority of cases, your mortgage provider will make it a condition of your mortgage offer that you take out buildings insurance. Once again, cheaper is not always better – make sure the cover is sufficient for what you need.

That, then, is the gist of it. There are other considerations to think about, and we will take you through those as we go along. Take it step by step with us and you will find that it is not as traumatic as you anticipated – and you will be left with the best possible deal at the end of
it all.