Learn what you need to know!
If you are a first time buyer you need to know as much as you can about the current market. Read the updates, get your local property magazine or use the online directory service in your area. You will get lots of questions about your mortgage selection: fixed rate, a tracker or a standard variable rate? What do they all mean? 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.
The Deposit
When buying you first home you will borrow the money from a lender and take out a home loan called a mortgage. You should usually, but not always, put a lump sum of money towards the purchase. This lump sum is called a deposit. The more that you can save the better. It shows the lender that you the lender will see that you can be responsible and save money.
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. This saving regime stands you in good stead when the prospective lender is considering whether you will be a good person to lend to.
The other main benefit of having a deposit is that you instantly have equity in the property. Also, there is a buffer in case the property value drops.
Don't reject help from your parents!
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. Be sure not to rule this option out completely.
What's Available
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.
Make sure you do shop around don't just walk into your current bank/building society and ask them for a mortgage. Look at what the marketplace has to offer for a product that suits you. But be very weary as a mortgage with a very low interest rate will often come with large repayment fees!
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. As long as you do your research properly you should always see the benefits in buying your first property. Remember think with your head and not your heart!
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! Again don't just buy the first house you see! Do your research thoroughly, the best and most reliable up to date resources can be found and easily accessed on the web.
