Find a mortgage for you – First Time Buyer Mortgages

Find a mortgage for you – First Time Buyer Mortgages

First time buyer mortgages are becoming less accessible for many due to rising house prices and the current state of the economy. Although house prices are slowly falling, first time buyers are finding the prospect of securing a mortgage a daunting experience. One of the main concerns linked to first time buyer mortgages is the required deposit. With the current financial market conditions, lenders are typically asking for a deposit of around 5%, although the figure may vary depending on the lender.

Find a mortgage for you

For many people the idea of owning their own home is beyond reach as the deposit is unattainable. However there are a variety of options on the market which can help potential first time buyers to find a mortgage without getting into debt. Some options include buying a property with friends, guarantor mortgages, government schemes and buy to let mortgages. By following an alternative option those wishing to get on the property ladder may find a mortgage which is both affordable and realistic.

First time buyer mortgages – Fees

In addition to a deposit, first time buyer mortgages often include a higher lending charge. This tariff which was previously known as the mortgage indemnity guarantee or MIG, is a fee which the lender charges if the loan is greater than a given percentage of the property’s value. Lenders often use this fee to buy an insurance policy which protects them if the borrower defaults and stops paying the mortgage. Some lenders may ask for this fee up front at the start of the mortgage or add it to the ongoing loan.

If you want to find a mortgage and get on the property ladder for the first time you may find that you need to compromise or follow an alternative method. By speaking to an independent mortgage adviser about first time buyer mortgages you’ll discover which mortgage solution can work for you, without getting into unnecessary debt.

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