UK Mortgage Information: First time Buyers mortgages

First Time Buyers Mortgage

Stepping onto the property ladder for the first time can be a terrifying and confusing experience. However …Homeownership can be the most rewarding and worthwhile decisions you will ever make. Your home will provide you with a sense of identity, tax advantages and after time can be a valuable source of equity. These same reasons also make a home purchase one of the largest, most important financial decisions you will ever make. However, if you are not informed or do not educate yourself with the mortgage process, the purchase of a home could very well be an uncertain, frustrating experience.

First time buyer (FTB) affordability is a national issue with most UK towns now unaffordable. That's why many lenders introduced special schemes to help with managing your first home loan - the innovative solutions for FTB affordability trap. One unique scheme offers a joint mortgage between a FTB and a parent (or close relative) and can be used for both FTB's and lifestyle change e.g. divorce. It can include the income of the parent (or close relative) and use a flexible approach to their existing mortgage commitment, giving your clients the enhanced borrowing capacity they need. The lender will pay the HLC on this mortgage and although many lenders have stopped their 100% LTV products for the time being,loans of 95% to 98% LTV are still avaiable, the parent must have held a mortgage for 3 years or own an unencumbered property.

You may feel overfaced by the choice but it will be worth while shopping around to make sure you get the best deal you can. Remember if you take out a discounted or fixed rate mortgage you are likely to be liable for an early redemption charge if you pay off the mortgage within a set period.