Mortgage Deals for First Time Buyers
Buying your first home can be a daunting prospect - there are several mortgage options open to you, and it can be hard to understand the differences between them. At The Contractor Mortgage Company we offer specialist advice for first time buyers. Because we are a mortgage broker, we’ll search over 90 lenders and 12,000 products in order to find you the best mortgage deals.
First Time Buyers - Help and Advice
The good news for first time buyers is that there are plenty of money saving offers out there, as different mortgage lenders compete for your business. There are also several schemes in place to help first time buyers get on the property ladder. These include shared ownership and shared equity agreements, as well as the government’s Help to Buy initiative. Again, we can help you decide which of these, if any, is the right option for you.
What type of Mortgage do I Choose?
First time buyers often have a limited deposit and so require high loan-to-value (LTV) mortgages. For example, you may only have a 10% deposit and so need to borrow 90% of the value of your new home. There are lots of high LTV mortgages on the market, and there are two main types from which to choose. The type of mortgage you opt for will depend on your own particular circumstances and requirements.
Fixed or Tracker rate mortgages require you to pay a fixed rate of interest for a predetermined period of time, for example, a 6% interest rate for the first five years of the mortgage period. With a fixed rate mortgage you know exactly how much your repayments will be for the foreseeable future, which provides peace of mind and allows you to budget accordingly.
Tracker mortgages vary with the Bank of England Bank rate, so repayments can go up or down. If central interest rates fall then you save money each month, but if they rise, you will be required to pay more. Tracker mortgages can also be capped which means that the interest rate payable can’t increase above a set maximum rate.
Within these two main categories of mortgage there are also several other options such as bank account mortgages and offset mortgages. For more details on the types of mortgage available to you, please feel free to contact us for impartial advice, by calling 0330 088 1260 or use our contact form.