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First Time Buyer Mortgages

Buying your first home is a rewarding and somewhat daunting time for us all. Your home is for most of us the single most expensive investment you will ever make so getting the right property and the right mortgage that serves both your physical and financial needs is paramount to your success in this situation.

Buying a home can also be a stressful situation, often when you first scope out the mortgage market the amount of companies and varying products can be overwhelming. This needn't be the case and a simple process of narrowing down your options and tailoring your decisions directly to your needs can remedy the situation almost entirely.

First you will need to decide whether it is financially viable for to buy a home. Raising the deposit for your first property can often be the main issue and if you have this and sufficient income you should probably go for it. Many people who are renting properties are paying more than they could be paying for a mortgage and seeing no equity at the end of it. If you are in this situation then you should almost certainly consider buying a property with a mortgage.

Before looking for a lender you will need to quantify how much you will be able to borrow. You can do this by working out what lump some you can muster and the amount of disposable income you have on a monthly basis.

Borrow realistically and remember to budget for unforeseen situations. If you are buying a new home then you may not need to consider renovation costs but more decorations and furnishings. Older properties may require flooring, plastering, structural or electrical work, will all need to be budgeted for in your initial analysis. Don't forget the legal fees, admin, fees and of course stamp duty, these all come hand in hand with the purchase of new property.

Choosing a mortgage that suits you and you financial standing is important. If you have a bad credit history then this may prevent you from obtaining finances from high street lenders and you will have to look else where on the market.

Fixed rate mortgages are often the advisable step for first time buyers. These provide a fixed interest rate for a set period (normally between 2 and 5 years) the advantage of this is that you know exactly how much you need to fork out each month for your mortgage. Other schemes such as trackers, current account or variable rate mortgages are more risky but you need to consider what is right for you.

Many firms will have dedicated first time buyer mortgages. These are often fixed rate mortgages; the advantage of these is that they are often tailored to people's ability to provide a substantial deposit. If you struggle finding the deposit then they may endorse other systems to help you find it such as a guarantor mortgage, shared purchase schemes or something similar.

It is vital that you scope out the market extensively comparing rates between different lenders to ensure you get a mortgage that suits you. A mortgage is a long term financial investment and the decisions associated with it shouldn't be taken too lightly as it is likely to have an impact on your financial welfare for years or possibly decades to come. If you are ever in doubt seek advice from a qualified professional broker or advisor.