Gone are the days when purchasing your first property involved a small deposit (if any deposit at all!) and a bargain price on the house of your dreams. Nowadays, even after the economic crisis, house prices still remain at the highest wage to price ratio in history making it harder and harder for first time buyers to get any sort of footing on the property ladder at all. However, you don't have to cancel your dream of being a property owner just yet as there is something you can do to help you get on to the property ladder:
Get a first time buyer mortgage
There are not many benefits to being a first time buyer. You don't get to benefit from equity in an existing property and you'll have to cough up for a deposit. However, if you search carefully for a specific first time buyer mortgage you could be surprised at what you find. Already there are a number of mortgage providers who are beginning to bring back 95% mortgages meaning that you'll only need to find a 5% deposit.
On top of this you will get preferential rates saving you up to 3% or, in some cases, even more, which can equate to literally thousands of pounds in interest. On top of this first time buyer mortgages often waive any set-up fees which can save you an addition £1000 or even more. So, when looking for a mortgage make sure you look for a provider that has a specific deal for first time buyers rather than jumping straight in the deep end with the first deal you find or that you are offered.
Remember that the chance of getting a mortgage and improving the rate of interest you pay will also be drastically improved with the size of your deposit. It always makes sense to put down as big a deposit as you comfortably can. This will drastically improve your chance of being approved, could give you preferential rates and obviously also reduces the amount you are borrowing which can save huge sums on interest payments.
It may also be worth checking your credit file and putting right any problems you may have highlighted before applying as again, this could affect your chance of getting a mortgage in the first place or could mean you pay more in interest charges if you do find a provider to lend to you. ทาวน์เฮ้าส์มือสอง
Using a First Time Buyer Mortgage to make your first home purchase has many benefits and could eliminate a lot of the pain most newbies experience with buying their first home. Shop around and go with the best mortgage provider you can find.
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