Mortgage tips for first time buyers
For first time buyers, it can be exciting when you are close to owning your own property. However, that excitement can also be coupled with worry and stress, especially when it comes to working out the mortgage and how you are going to pay for your first property. Here are some mortgage tips for first time buyers to help ease the stress and give you the help you need.
The basics
Essentially, a mortgage is a loan that you take out in order to purchase a property. Typically this will involve putting down a deposit so that you can arrange a mortgage (this can vary depending on your circumstances but could be 5 per cent, 10 per cent more or less).
The idea is that you then pay back the mortgage over a period of years. As with any loan, if you repaying it earlier then you will pay less in terms of interest.
Different types
There are different types available. Broadly speaking these fall under fixed-rate (you pay a fixed rate per month, making it easier to budget for), tracker (usually calculated on a factor such as the Bank of England base rate), discount (an interest rate set below a lender’s standard rate for a period of time) and offset (A payment linked to your savings that can either reduce how much you pay each month or allow you to pay off your mortgage sooner).
Getting a good deal
When comparing offers, people often look at the interest rate. However, the lowest interest rate isn’t necessarily the best deal, as the arrangement may also include an arrangement fee upfront. Fortunately, there are mortgage calculators available online that can make it easier to gauge what represents the best deal for your individual circumstances.
As with a lot of products and services, it pays to shop around. This is where an effective broker can make it easier, as they will often have deals available that others would not be able to secure.
Accepting an offer
Typically, an offer with a mortgage lender will be valid for around three to six months, though in some cases it may be possible to ask for an extension (also this can be the case if you are looking to secure a mortgage on a new-build home).
How we can help
At Hove Mortgage Services, we believe in giving people the support they need in order to secure the property they want with the best possible deal on their mortgage. Our mortgages cover a wide range of properties, from one bedroom apartments to mansions. We work closely with highly rated market leading lenders to find the best deals and believe in working through secure processes so that you know you are getting something appropriate. Essentially, we want to take the hassle out of the situation and make it easier for you.
To find out more, please contact Hove Mortgage Services today so we can discuss the best first time buyer mortgages to suit your personal requirements.
