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Many people who are thinking of buying their first home look for ways to make this purchase more affordable, such as sharing accommodation, applying for government schemes or looking for properties in low cost areas. One of the most effective ways to benefit from long term savings on your mortgage is to compare rates for first time buyer home loans, which are designed for people who may not have high salaries or be able to afford large deposits.
A first time buyer is defined as someone who has never previously purchased a property alone or with other people in the UK or abroad. There are certain properties that can be particularly desirable for such people, including council and housing association homes that have been put up for sale. It’s recommended to search for properties in a number of locations rather than being too inflexible as there are many factors that can affect the price of homes, including crime rates and access to amenities and transport facilities.
You should also consider seeking legal and financial advice before making your decision over which property to buy, as there may be aspects you had not considered, from inspection costs to council tax - which varies between different types of homes. It may even be the case that a mortgage is not the best option for you at present, depending on your financial circumstances and the current state of the property market.
Speaking to lenders about first time buyer mortgages can offer a lower cost alternative to standard home loans, which may be prohibitively expensive for young buyers or require high deposits above 20 per cent. Some first time mortgage deposits have dropped as low as 10 per cent, though it’s important to note that these loans will usually prove more expensive in the long term, due to higher interest rates.
It can also be worth obtaining a copy of your credit score before applying for a mortgage, as this will be used by lenders to determine your suitability for a loan based on your perceived ability to make repayments on time. If you see any areas for improvement in your credit score, making small changes could lead to major differences in the amount you pay in interest.
With house prices becoming more affordable and many lenders reporting a rise in the number of people taking out new mortgages, it’s expected that first time buyer mortgages will remain a cost-effective option for people purchasing their first house or apartment.
The author of this article is a part of a digital marketing agency. The content contained in this article is for information purposes only and should not be used to make any financial decisions.
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