But Be Very Weary As A Mortgage With A Very Low Interest Rate Will Often Come With Large Repayment Fees

Category: Finance, Real Estate.

Learn what you need to know!

Read the updates, get your local property magazine or use the online directory service in your area. If you are a first time buyer you need to know as much as you can about the current market. You will get lots of questions about your mortgage selection: fixed rate, a tracker or a standard variable rate? You will need to understand them and be clear, most high street banks/ mortgage lenders will help you with this and it is best to see a few before going ahead. What do they all mean? The Deposit.

You should usually, put a lump, but not always sum of money towards the purchase. When buying you first home you will borrow the money from a lender and take out a home loan called a mortgage. This lump sum is called a deposit. It shows the lender that you the lender will see that you can be responsible and save money. The more that you can save the better. One good thing about having a deposit to put down is that when you apply for your first mortgage, the lender will see that you can be responsible and conservative with money, particularly if you have saved up over a period of time.

The other main benefit of having a deposit is that you instantly have equity in the property. This saving regime stands you in good stead when the prospective lender is considering whether you will be a good person to lend to. Also, there is a buffer in case the property value drops. Many Parents have seen their home's value increasingly rise compared to their mortgage and could lend a lump sum for a deposit, enter into a joint mortgage, or act as a guarantor. Don' t reject help from your parents! Be sure not to rule this option out completely. Make sure you look at various affordable methods, mortgage lenders have offered 3 to 3 and a half times borrower's salary, or 2 and a half times joint earnings.

What's Available. Make sure you do shop around don' t just walk into your current bank/ building society and ask them for a mortgage. But be very weary as a mortgage with a very low interest rate will often come with large repayment fees! Look at what the marketplace has to offer for a product that suits you. Remember as a first time buyer the risk is great but this is the best way for you to get your foot on the ladder. Remember think with your head and not your heart! As long as you do your research properly you should always see the benefits in buying your first property.

Quite recently a lot of first time buyers have been joining forces to buy their first property, this is a great way to help you through the initial stages but keep in mind the dangers and the clauses you may come across, so make sure you collect the legal papers and decisions that you will need to make to get ahead! Do your research thoroughly, the best and most reliable up to date resources can be found and easily accessed on the web. Again don' t just buy the first house you see!