First Time Buyer Mortgage Advice

By: Paul Hockney
Submitted: 2008-05-26 13:20:55
Print this article | Tell a friend | For publisher | Social Bookmarking
Rating:
 

For first time buyers the financial commitment of a house purchase is both frightening and exciting at the same time. And this is even more so if you are working in an urban area where you will end up paying a premium for even the smallest properties.

So as a first time buyer what are the things you should watch out for to make the whole house buying experience that much easier.

Do your homework
With so many lenders offering mortgages there are literally thousands of mortgage deals on offer across the UK. So it's important that you research the market thoroughly and don't get drawn in by all the hype and marketing you see on the TV, Online, on the side of buses etc. You should also speak with friends and relatives who have also been through the process recently to get their valuable opinion on what you should and even more importantly shouldn't do.

Mortgage Advisor
After having done your own homework you still feel that you are no closer to deciding on which company to use for the mortgage then you should consider the help of a mortgage advisor. Although they will cost you money for the advice they also have access to 100's more mortgage deals from across the UK. Obviously you need to find one, which is not associated with any of the lenders so they can offer you truly independent advice. They will also be able to advise you on First Time Buyer Deals which may not even be advertised by some of the main lenders in their normal marketing drives.

Decision making
Once you have all the information in front of you make sure that you ask loads of questions before making the final decision. So whether you are speaking directly with the bank or using an independent advisor make sure and be thorough with your questioning.

You should also look at the fine print. For example are there any penalties for paying off or moving your mortgage early. For example on some mortgages there may be a 'redemption penalty', which is enforced if you move lender within 2-5 years of taking out the mortgage. This penalty can run into £1,000's so see whether this applies or not.

Mortgage amount
Although you may have your heart set on a lovely home you should also temper your desire with whether you can really afford it. Make sure and set a 'realistic' cap on how much you are willing to pay for your first house. Try and get as much of a deposit as possible rather than taking out a massive mortgage. You will benefit from this in the long run. So basically, don't bite off more than you can chew!

Conclusion
Buying a house for the first time can be a very stressful time but you should try and make it as stress free as possible by following the simple rules outlined in this article. There is so much free advice available for first time buyers plus the knowledge of all the experts should help you make the experience a little less stressful, and maybe even enjoyable!

Paul Hockney is an online loan expert who provides first time mortgages tips and advice.

Article source: Expert Articles

Most Recent Articles in Mortgage Refinance category

  • Are You Pre-approved, Pre-qualified or Pre-ticked - By: Lisa Gray
    If your real estate agent wants you to press on with your mortgage application until you can get pre-approved, do not be offended, he is simply working in your best interests. To make an offer for a home that you wish to buy, it is much more advantageous to be pre-approved than to be pre-qualified.
  • Comparison of Mortgage Rates Made Simple - By: Cas Paton
    The Mortgage Compared website allows users to easily compare mortgages online easily, with mortgage brokers ready to assist
  • Compare Mortgages For Best Rates - By: Cas Paton
    The Mortgage Compared website allows users to easily compare mortgages online easily, with mortgage brokers ready to assist
  • Equity Release Schemes Can Benefit 'asset-rich' but 'cash-poor' Pensioners - By: Isla Campbell
    Equity release schemes are designed for older people to free up some of the value of their home, enabling them to enjoy retirement in comparative comfort.
  • The Beneficial Bi-Weekly Rapid Reap Mortgage Choice - By: Carolyn Capalbo
    Many of us don't get the best value for our mortgage money. For most of us, mortgages take the majority of our wages; for this reason we need to shop around for the best deal and many of us don't.
  • What Costs Should You Add Onto Your Mortgage - and What Costs You Should Not - By: Todd Levinson
    Area rugs, decorative pieces, artwork, accent furniture and window coverings, at the end of the day, may look snazzy but won't make you any better off with regards to your investment. So don't attempt to include them into your mortgage amount. Hold off, and you can gradually accumulate these items over the years.
  • Mortgages for the Self Employed - By: Ted Guarnero
    With everything that has transpired with the sub-prime mortgage crisis, lenders are not so swift to hand out loans to just anybody any longer. This means that if you're self employed it has become much more difficult to secure a mortgage than in the recent past. This being said, it is not impossible. You'll need to work hard to obtain a solid loan application with a good lender. Understand first that as someone who is self employed not all lenders
  • Is equity release really as bad as it sounds? - By: Steve K Matthews
    Equity release plans are a double-edged sword. You will be left with less equity in your property, but freeing up money can help you cover necessary expenses or fulfil a long-time dream, so is it worth it?
  • Bridge the pension gap with an equity release plan - By: Chris Stevens
    If you are aged 55 or older and want to boost your income, then selling up and moving to a smaller property is a popular option, but if your home has lost some of its value, or you don't want to move, then equity release offers an alternative.
  • Equity release is not just for the over 55s - By: Amanda Gillman
    If you thought equity release was only of interest to those over 55, you would be mistaken. Stats show that younger people are doing most of the shopping around when it comes to equity release schemes.