Uk Mortgages For The First Time Buyer

UK Mortgages For the​ First Time Buyer
With the​ cost of​ houses and property continuing to​ rise,​ UK mortgages are also becoming more expensive .​
For first-time buyers,​ this is​ more of​ a​ problem than for those already on​ the​ property ladder .​
With the​ average cost of​ a​ new home now almost £200,​000,​ it’s almost becoming an​ impossibility to​ get your first mortgage.
Thankfully,​ there are options available to​ you,​ as​ well as​ numerous companies who specialise in​ this particular market .​
From helping you​ find the​ best type of​ mortgage in​ the​ UK for first time buyers to​ explaining the​ different interest rates and charges,​ taking the​ first step onto the​ property ladder can be a​ little more realistic.
Where to​ Start
The first thing you​ need to​ do is​ decide how much you​ can afford,​ and then take it​ from there .​
One of​ the​ best features of​ UK mortgages compared to​ other countries is​ that there are a​ host of​ different ways specifically to​ help you​ buy your first home.
100% Mortgage
For example,​ you​ can take out what’s known as​ 100% mortgage .​
This can make a​ huge difference in​ being able to​ afford your own home if​ you’re a​ first time buyer .​
With a​ 5% deposit on​ a​ £200,​000 home costing a​ minimum £10,​000,​ it​ can allow you​ to​ buy a​ better home than you​ might have been looking at.
However,​ you​ do need to​ be careful,​ since 100% mortgages tend to​ come with a​ higher interest rate than ones where you​ pay a​ deposit .​
They can also be more difficult to​ get,​ due to​ increased credit checks.
Shared Ownership
Another option is​ to​ look at​ shared ownership – this is​ where you​ can buy a​ home with a​ friend and share the​ costs .​
The benefit of​ this is​ that you​ can both get on​ the​ property ladder,​ although make sure you​ both sign an​ agreement for what happens should one of​ you​ want to​ sell their half.
Guarantor Mortgage
This is​ a​ particularly useful option for a​ younger person looking to​ buy his or​ her own home .​
Many banks and lenders will now allow a​ parent or​ guardian to​ co-sign the​ mortgage as​ a​ guarantor .​
This means that if​ the​ homeowner can’t meet the​ mortgage payment,​ the​ guarantor will meet it​ instead .​
Not only does this help satisfy the​ lender,​ it​ may also let the​ buyer afford a​ more valuable property .​
However,​ these can be risky,​ since if​ the​ guarantor ends up having to​ pay the​ mortgage,​ it​ could strain whatever relationship they have with the​ buyer.
Graduate and Professional Mortgages
Another type of​ mortgage fairly unique to​ the​ UK is​ this one,​ and it​ offers an​ excellent opportunity to​ anyone who has either just graduated from University,​ or​ is​ employed in​ a​ certain profession .​
Since a​ University graduate will normally have a​ large amount of​ debt,​ it​ can be hard for them to​ get a​ mortgage .​
However,​ lenders are of​ the​ opinion that a​ graduate will be able to​ find a​ high-paying job,​ so they will overlook any debt and allow a​ graduate mortgage.
A professional mortgage is​ similar,​ in​ that banks are far more likely to​ give you​ a​ mortgage if​ you​ have a​ certain job .​
Professions such as​ lawyers or​ doctors are known to​ see large initial wage increases,​ and this helps in​ getting a​ mortgage approved.
There are many more UK mortgage methods available for first time buyers,​ including state help .​
For all the​ options available to​ you,​ a​ specialist mortgage advisor will be able to​ help you​ find the​ package that’s best for you.

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