First Time Buyer Mortgages

Information On First Time Buyer Mortgages

Looking for your first home can be a frustrating and, at times, soul-destroying task. House prices always seem to escalate faster than salaries. In addition, associated costs such as legal fees have increased faster than the rate of inflation.

Nevertheless, financial institutions continue to court first time buyers, assiduously, with good reason. Without first time buyers, the whole housing market would stagnate and so would mortgage providers' profits. Forward looking mortgage lenders need to take a long-term view of their customers’ interests. If borrowers are treated fairly they are much less likely to shop around when looking for a loan on a new property or a re-mortgage for their current home. Over the long-term, retaining existing borrowers is much more cost effective than having to vie for new borrowers in a competitive and ever changing market.

The First Step for the First Time Buyer
Before you start your search for your first property, some basic planning and calculations are essential. More than anything else, you need to know how much you can afford, which almost always means how much you can afford to borrow.

First Time Buyer Mortgages
First of all, make contact with a selection of mortgage providers by visiting their high street branches or by telephone or via their websites. Many websites offer online mortgage repayment calculators so you can quickly get an idea of the size of mortgage that you will be able to afford. The amount that you will be able to borrow will depend largely on your income level and the size of the initial deposit that you can put down on the property. If in regular employment, a single person should be able to borrow at least three times their annual salary and a couple should be able to borrow at least two and a half times their joint annual salaries. Some lenders offer up to five times’ annual salary on particular mortgage products, but conditions may be attached.