ThinkIFA guide ‘First Time Buyer Mortgage’
Buying your first home is an incredibly exciting time. However, so many first time buyers get so caught up in the whole process of viewing properties that you can forget about the financial side of things.
Applying for a mortgage can seem a daunting prospect but despite all the changes to the way banks lend, it is still possible to find some great deals out there.
Deals for First Time Buyers
Many mortgage lenders offer incentives to lure first time buyers such as “save-to-buy” schemes and help with legal costs but as with any financial decision, all the information needs to be considered carefully.
Most buyers will have to produce a minimum deposit amount but your choices are increased and you can usually get a better deal if you can afford a better deposit.
First Time Buyer Mortgage Rates
There are two main types of mortgage, variable and fixed.
Fixed rate mortgages allow you to budget more assuredly as you know exactly how much you are paying out each month. The interest rates are often higher though and can be fixed from two to five years or more. Penalties can be given for early repayments.
Variable rate mortgages fluctuate along with the market and are either linked to the Bank of England base rate or the lender’s own standard variable rate. Whilst interest rates are low your repayments can be favourable of course rates can go up as well as down and there is the risk of paying interest at a much higher rate than you started out on.
Choosing the Right Mortgage
There are hundreds of mortgage options for first time buyers and many restricted financial advisers linked to banks and other institutions will only advise you on the products and services they offer.
An independent financial adviser can look at and compare a wide range of products to find the one which suits your needs and circumstances the best.
Because of their experience and professional understanding of the market, they may be able to offer you a better deal than you might find on the high street.
What should I do now?
If you would like a friendly chat with an independent financial advisor then please complete the enquiry form below.
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