Mortgages For First-Time Buyers

Getting a mortgage for the first time can be a stressful experience.

First-time buyers are often in the news, simply because it’s become so difficult for them to afford a home. Single first-time buyers are particularly badly hit, because property prices have risen so far and so fast that a single salary often isn’t enough to afford the property available in your area. Even with two incomes, it can be difficult, and mortgage lenders are constantly looking for new ways to make mortgages more readily available to this market.

How do you find a mortgage?

First-time buyers have no experience of the mortgage market. Unlike existing homeowners, they can’t negotiate a new deal with their existing provider, or rely on the rising price of their property to get a good deal with a new lender. Instead, as a first-time buyer, you’ll have to start from scratch, and the whole mortgage market can be very confusing:

• Types of mortgage – what’s better – a fixed rate mortgage or a tracker mortgage? An offset mortgage or one that’s linked to your pension? There are thousands of mortgage products on the market, and it can be difficult, if not impossible, to compare them all.

• Interest rates – is there a catch with low interest rate mortgages? Why would you choose a mortgage at a higher rate? Is it safer to get a fixed rate or a variable rate mortgage? These products are incredibly competitive, and the interest rate is obviously important, but it’s not the only consideration.

• Conditions – what conditions are attached to your mortgage? Do you have to take it out over a certain period? Are you able to overpay? Can you take payment holidays? How long are you tied into the product before you can remortgage?

• Loan amounts – will the lender give you a large percentage of the price of the house you want? Will they expect you to provide more than a 10% deposit? What multiple of your salary will they offer you?

Getting mortgage advice

The best way for first-time buyers to find the best mortgage is to take mortgage advice. Trained, professional advisers can search the market – including products not available on the high street – for a mortgage that gives you everything you need.

If you are looking for a mortgage, let the experts save you time and money by finding the right product for you. Homebank has only the best mortgage consultants ready to advise you on all your mortgage and insurance needs. For useful mortgage advice, call us to arrange a no obligation appointment to suit you. Homebank is the ‘people’s mortgage broker’ with over 3500 mortgage products to choose from, including products that are not readily available on the High Street. Homebank’s experienced consultants could find the ideal product for you – call us now on free phone 0800 052 3604 or enquire online.