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Mortgage Advice for First Time Buyers: Tips and Hints

If you are about to take your first steps onto the property ladder, you are no doubt feeling tentative about the huge financial commitment that you are making. If you want to make sure that you are making a sound financial decision, there are some things that you need to know.

Your mortgage advisor may tie you up in knots with financial jargon. If you want to cut through the confusing mortgage terminology and seek independent advice then this guide will prove to be a useful resource for you.



Getting the Best Deal

As a first time buyer, getting a great deal on your mortgage can seem like an oxymoron. However, you can strive to get a great deal if you have a large deposit. If you want to make sure that you are in for the best deal possible, then you will need roughly, 25% deposit. This can seem unachievable, but to get the best rates in the current market, you will need a hefty deposit.

Think about it logically: you are considered something of a risk to the bank. They are loaning you a phenomenal sum of money. So, to protect their return on investment, they need to know that you are viable mortgage candidate. Having a bigger deposit means that you will borrow less. This makes you an ideal candidate in the eyes of the mortgage lender. Speaking to an estate agent in Chislehurst may be able to help you find the right mortgage.

Help to Buy Scheme

The Help to Buy Scheme was introduced in April 2014 in a bid to help first time buyers get on the property ladder. The great thing about the scheme is that lenders are only requested to have a 5% deposit within their savings account. The government essentially loan you the remainder of the deposit, which is interest free for five years.

As with all of these schemes, there is a catch. If you are looking at having freedom of choice when it comes to buying a home, this will not be the best mortgage option for you. The Help to Buy scheme is typically only given to those that are looking at buying new build homes, or the homes are under the current schemes list. You will not have as much freedom of choice if you choose to partake in the scheme. However, if you are less fussy about where you want to reside, and you want to get onto the property ladder, the Help to Buy Scheme is proving successful with first time buyers.

Research Your Broker

To make sure that you are getting the best possible deal, you must talk to a number of mortgage brokers to weigh up your options. You can obtain mortgages from a number of high street banks, or independent mortgage advisors. Fees and interest rates will vary greatly so do try to speak to as many different lenders as possible. A mortgage is a huge financial commitment. With this is mind, it is important to endeavour to get the best possible deal so that you can protect your own personal finances over the course of the next three decades.

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