first time buyer mortgages you’re able to apply for, ranging from your current and projected future income and your credit score, which can be obtained for a small price by contacting a credit agency. Examining your credit score can help you identify areas in your finances that you could improve, with any progress helping to reduce the amount you’re required to pay for a mortgage. For example paying off other outstanding loans and credit cards will significantly improve your score.
Generally lenders will offer mortgages calculated as being three times the borrower’s annual wage so, if you are planning on changing jobs or moving to a higher salary in the near future, you should inform your mortgage lender of this. If you are concerned about funding the 10 per cent deposit required by many lenders, you may be able to find loans with lower rates. You should also consider whether a mortgage is really the right option for you in your present situation or if it would be wiser to save for a few more years first.
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. "> First time buyers have always faced obstacles when trying to secure an affordable mortgage rate. Lenders tend to view them as being more likely to miss payments or to default on their mortgage entirely. This resulted in new buyers traditionally having to deal with higher borrowing costs as banks try to protect their investment. This eventually lead to the development of first-time buyer mortgages, with these loans proving particularly beneficial in the face of rising property prices and provide people with a more cost-effective option for getting their foot on to the property ladder.
Depending on your circumstances, you may be able to obtain government assistance as a first time buyer. Mortgage lenders also offer a number of alternatives for customers who feel they may struggle to meet repayments, including guarantor mortgages and shared mortgages to split the cost. Certain jobs also allow borrowers to benefit from special rates on first time mortgages.
If you are a first time home buyer, you can theoretically apply for any type of mortgage - though there are distinct benefits to choosing a first time buyer mortgage that is tailor-made for the needs of people in your situation. Standard loans will typically require a larger deposit to provide security for the lender although extending the length of a mortgage is a way that repayments can be lowered.
A number of factors will determine the kind of first time buyer mortgages you’re able to apply for, ranging from your current and projected future income and your credit score, which can be obtained for a small price by contacting a credit agency. Examining your credit score can help you identify areas in your finances that you could improve, with any progress helping to reduce the amount you’re required to pay for a mortgage. For example paying off other outstanding loans and credit cards will significantly improve your score.
Generally lenders will offer mortgages calculated as being three times the borrower’s annual wage so, if you are planning on changing jobs or moving to a higher salary in the near future, you should inform your mortgage lender of this. If you are concerned about funding the 10 per cent deposit required by many lenders, you may be able to find loans with lower rates. You should also consider whether a mortgage is really the right option for you in your present situation or if it would be wiser to save for a few more years first.
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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