Mortgage Help for First Time Buyers?

17 May 2010

Lenders appear to be increasing their efforts to try and assist first time buyers to purchase property.  More lenders are now willing to offer loans where there is only a 10% deposit. In addition there is a greater choice of mortgage products available.

However, it is still the case that the higher the percentage loan required, the higher the interest rate charged.  Interest rates are lower and the range of deals broader where at least 15% of a deposit can be raised.

Guarantor mortgages are also back in the limelight with more lenders willing to consider the situation where a third party acts as a guarantor for part or all of a new loan.

As well as looking at the interest rates charged, new borrowers should also be aware of the costs associated with any mortgage offer they are considering. These include the product or arrangement fee charged by the lender, which can vary quite substantially, and broker fees charged for arranging the mortgage.

As always it pays to get independent advice to ensure that a “whole of market” basis is used to source an appropriate mortgage.

For further information or advice, please contact Mike Davidson.