Things are tougher than ever for first time buyers. Many first time buyers find themselves leaving university with large debts which it takes a long time to repay. In fact, research last year showed that some were graduating with debts of around £20,000, though the average is around £10,000.
That means it’s difficult for first time buyers to afford to buy a home. Add to that the fact that house prices have shot up, and it puts home buying out of reach for many until they are well into their 30s. That’s not good for the long term market, so there are many deals set up specifically to help first time buyers achieve home ownership.
Some mortgage lenders offer 100 per cent or cash back mortgages. These are mortgages that help first time buyers with the additional costs of home buying, such as legal and valuation fees. Some lenders even offer mortgages that will allow first time buyers a loan to renovate a property once they have bought it. However, those deals only work for those who can afford to buy a home on their own. There are other mortgages for first time buyers .
Other Types Of Mortgages
Some lenders offer guarantor mortgages for first time buyers. These are mortgages where a family member guarantees that the mortgage will be paid. Once the first time buyer is financially stable, it’s possible to switch to a standard mortgage deal. Shared ownership mortgages are also becoming popular. These allow a group of two to four unrelated people to buy a home together. This is a good way to get onto the property ladder, but there are pitfalls if people don’t get a long or if one of the buyers wants to pull out of the deal. It’s also best to make sure that all of the prospective buyers have a good credit rating.
If you are a key worker, then you may be able to get a first time buyer mortgage through the government’s key worker scheme, which provides mortgages through certain mortgage lenders. Whichever type of mortgage you go for, it is essential to shop around to see what type of interest rate and repayment plan best suits your needs. If your credit rating is poor, you can also go to a bad credit mortgage broker or lender for first time buyer deals. There are thousands of deals out there, so there’s sure to be something available for most first time buyers.
Popularity: 6% [?]