In recent years, the number of first time buyers securing a mortgage has fallen drastically. According to the Association of Mortgage Intermediaries, in 2006, 47% of all mortgages were taken out by first time buyers, whereas in 2016, this number had fallen to 27%. This decrease in borrowing has been attributed to tighter lending criteria following the financial crisis, as well as first time buyers being put off by high house prices. However, despite these obstacles, there are still a number of ways that first time buyers can secure a mortgage and get on the property ladder.
Most people will need to get a mortgage in order to buy a property. A mortgage is a loan that is used to buy a house, and is usually repaid over a period of 25 years. In order to get a mortgage, you will need to put down a deposit, which is typically around 10% of the property’s value. You will also need to show that you have a steady income and meet the lender’s criteria.
There are a few different types of mortgage available, and the one you choose will depend on your individual circumstances. The most common type of mortgage is a repayment mortgage, where you make monthly payments which cover both.
Why now is a good time to buy
There’s no time like the present to buy your first home and locking in a mortgage. Rates are still near historic lows, buyers have returned to the market, and there’s more choice than there’s been in years.
Now is a great time to buy for a number of reasons. Firstly, interest rates are still low. While they have risen slightly from their all-time lows, they are still very attractive when compared to long-term averages. This means that your mortgage payments will be lower, freeing up more of your income each month.
Secondly, prices have stabilized and begun to rise in many markets across the country. This has been caused by a combination of factors, including an increase in demand from buyers who have been waiting on the sidelines for the right opportunity.
Finally, there is more choice available in the market than there has been for some time. This is due to the number of homes that were built during the housing boom and subsequently sat vacant during the recession. These ‘shadow inventory’ homes are now coming onto the market, giving buyers more choice and greater negotiating power.
If you’ve been waiting for the First Time Buyer Mortgage to buy your first home, now is the time to act. Interest rates are low, prices are on the rise, and there is more choice available than there has been for some time. Contact a mortgage broker today to learn more about your options and get started on the path to homeownership.
The steps you need to take to get a mortgage
If you’re a first-time buyer, the prospect of taking out a mortgage can be daunting. But with careful planning and the right advice, it doesn’t have to be. Here are the steps you need to take to get a mortgage:
1. Work out how much you can afford to borrow. This will depend on your income, outgoings and how much you have saved for a deposit. Use an online calculator or speak to a mortgage advisor to get an idea of how much you could borrowing.
2. Shop around for the best mortgage deals. There are a number of different lenders out there, so it’s important to compare their rates and terms before you make a decision.
3. Get a mortgage agreement in principle. This is a document from a lender which states how much they’re willing to lend you, based on your financial circumstances. It’s a good idea to get one of these before you start looking for a property, as it will give you an indication of how much you can afford to spend.
4. Start looking for a property. Once you’ve found somewhere you like, your estate agent will help you to make an offer.
5. Have your mortgage offer approved. Once your offer has been accepted, your lender will carry out a valuation of the property to make sure it’s worth the amount you’re borrowing.
6. Complete the paperwork and move in! Congratulations, you’re now a homeowner.
Taking out a mortgage is a big decision, but with careful planning it’s one that you can make with confidence. Use these steps to guide you through the process and you’ll be in your new home before you know it.
What type of mortgage is best for a first-time buyer
There are many things to consider when trying to figure out what type of mortgage is best for a first time buyer. The most important factor is usually going to be what you can afford. There are a lot of different loan options available, so you will need to do your research in order to find the best one for you. You may want to speak with a mortgage broker to get more information and help with the process.
Other things to consider include the length of the loan, the interest rate, and whether or not you want a fixed-rate or an adjustable-rate mortgage. You will also need to decide if you want a government-backed loan or a conventional loan. Government-backed loans often have more flexible terms and can be a good option for those with less-than-perfect credit.
Once you have figured out what you can afford and what type of loan is best for you, the next step is to start shopping around for lenders. It is important to compare rates and terms from a few different lenders before making a decision. You can use an online mortgage calculator to estimate your monthly payments and help you compare rates.
With so many options available, it can be hard to know where to start when it comes to finding the best mortgage for a first-time buyer. Once you have done your research and spoken with a few different lenders, you should be able to find a loan that is right for you and your budget.
The role of a mortgage broker
A Mortgage Broker is a professional who helps people secure mortgages. They work with both buyers and sellers to ensure that the mortgage process is smooth and efficient. A mortgage broker can be a valuable asset to any first-time buyer, as they have the knowledge and experience to help them navigate the often-complex world of mortgages.
A mortgage broker will typically start by meeting with the buyer to discuss their financial situation and what they are looking for in a mortgage. The broker will then work with the buyer to find the best mortgage product for their needs. This may involve shopping around with different lenders to find the best interest rates and terms. Once the mortgage is approved, the broker will work with the buyer to close on the loan.
A mortgage broker can be a valuable asset to any first-time buyer. They can help buyers find the best mortgage product for their needs and guide them through the often-complex process of securing a mortgage.
The benefits of using a mortgage broker
When you’re a first time buyer, there’s a lot to think about in terms of securing your mortgage. It can be difficult to know where to start, or even where to turn for help. This is where using a mortgage broker can be extremely beneficial.
A mortgage broker is a professional who can offer you impartial advice and help you to find the best mortgage deal to suit your individual circumstances. They will work with you to assess your financial situation and your long-term plans, and will then source a range of mortgage deals from different lenders on your behalf. This means that you don’t have to spend hours trawling through different websites and offers – the mortgage broker will do all of the hard work for you.
One of the main benefits of using a mortgage broker is that they have access to a wide range of deals from different lenders. This gives you the opportunity to compare different products and to find the one that is most suitable for your needs. The mortgage broker will also be able to negotiate on your behalf to get you the best possible deal.
Another benefit of using a mortgage broker is that they can offer you impartial advice. They are not affiliated with any particular lender, so they are able to give you impartial and objective advice on which mortgage product is right for you. This is extremely important, as it means that you can be sure that you are getting the best possible deal.
So, if you’re a first time buyer and you’re looking for help in securing your mortgage, using a mortgage broker could be the best decision you make.
It is easier to qualify for a First Time Buyer Mortgage than most people realize. There are a number of programs available to help people with their down payments and to find lenders who are willing to work with first time buyers. With a little bit of research, it is possible to find a mortgage that is affordable and that will help you get into the housing market.