So, you wish to buy your first home and take out a mortgage. Then congratulations on your first steps to becoming a home owner! Buying a home for the first time is very exciting, however, it is also a time to be cautious when looking a your mortgage and finance options. Get good independent advice from a mortgage professional is essential. What should you be looking out for?
- Choose an independent advisor who has access to the whole market
- Choose a no fees advisor who can arrange your mortgage for free
- Speak with a few different brokers to get an idea of what they can do for you
- Remember that all mortgage brokers and advisors have to be FCA approved to get mortgage advice.
What types of mortgages are available?
This really depends on a range of different factors that are personal to you. If you are as first time buyer and have a mortgage deposit of 5% then you should be looking at the 95% mortgage products and also the Help to Buy and New Buy schemes that are supported by the government. Help to buy mortgages The mortgage Help to Buy scheme was established to help first time buyers and those with a low 5% deposit get on the housing ladder. The government provides a 20% equity loan to bring the total loan to value to 75%. Most mortgage lenders offer fixed rate, variable rate, tracker and discounted mortgages. I would suggest anyone taking out a mortgage to discuss the options with your advisor or broker before making any firm decisions on the type of mortgage you should go for. An introduction to mortgages for first time buyers How do I find an good mortgage advisor? I would suggest you speak with friends and family who have recently used an advisor and ask for recommendations. Otherwise there are many good mortgage comparison sites and advisors online who not only provide mortgage advice, but allow you to search through and compare different types of mortgages online.