But most of the people fall short of funds to buy a house. It is for this kind of people first time home buyer mortgages are available in the market. These mortgages are specially crafted for the people who want to buy a house for the first time.
A First Time Home Buyer Mortgage is used for buying a house or constructing a house for the first time. The buyer needs to pay a percentage of the total cost as down payment. The rest of the amount is paid by the lender. The house which is bought works as collateral itself.
You can buy a house by taking an unsecured loan but a First Time Home Buyer Mortgage is better than an unsecured loan in the sense that it carries lower rate of interest. The repayment period is also stretched over a longer span of time. This makes your monthly repayments small. So it will be easy for you to clear the installments regularly.
In order to buy a house for the first time you need to borrow a big amount. Again, you have to repay it along with the interest. It is a big deal which involves a long time commitment. So, it is better to do a little home work before you go for the mortgage so that you get the best deal.
Since you have to make the repayment for a long time you can save a good amount if you can find out a first time home buyer mortgage at a low rate. Making enough research and gathering information will be much helpful in this regard.
To make your research quick and easy you can go through internet. This will save your time. Further, to get the approval in a quick and hassle free manner it is advisable to apply though online lenders.
Because of this, many first-time-buyers no longer qualify for standard mortgage products even if they are in full-time, steady employment. Lenders have therefore been forced to invent specialized mortgages that are designed to help people take their first step onto the property ladder.
First-time-buyer mortgages are not a product of their own, but rather comprise a small set of products that are aimed at the first home buyer market. They include shared ownership, guarantor, no-deposit, key worker, and standard mortgage products that are only available to people who do not yet have their own home.
Shared ownership mortgages are fast becoming the most popular vehicle for first-time-buyer to buy their first property with. Shared ownership products allow people to purchase part of a property and rent out the other part, which is owned by the seller ? usually a property developer. Over time, the buyer will purchase the remainder of the property from the developer one portion at a time.
A no-deposit mortgage is another product available to some first-time-buyers that is usually targeted towards individuals who have a steady income but who do not have enough savings to pay for a deposit. This type of first-time-buyer mortgage products is normally issued with 100% loan-to-value ratios.
Guarantor mortgages are simply home loan products for which a person signs up as a guarantor over the debt if the mortgagor fails to keep up with their repayments. Anyone who passes a lender's lending criteria can become a guarantor although they are typically parents of borrowers who are helping their children get a foot on the property ladder.
Key worker mortgages are made available to workers such as nurses and teachers. They are designed to encourage key workers to buy properties close to their places of work.
Exactly which first-time-buyer mortgages are suitable for you will depend on the circumstances under which you are buying the property as well as your personal financial situation. A careful assessment of your personal circumstances may be required by an independent mortgage advisor in order to ensure that you select the right product for your situation.
It should also be noted that the property market is always changing and with affordability continuing to decline lenders are constantly assessing the needs of first-time-buyers. Because the first-time-buyer market is so important to lenders, they are constantly working hard to ensure they bring new and innovative mortgages to the market which can help them get a foot on the property ladder.
This is all the more reason to contact an independent mortgage advisor for an unbiased assessment of your borrowing needs and personal financial situation. Independent mortgage advisors have access to the entire home loan market and should be able to help you select the most appropriate product to suit your needs.
Both Carleton Carl & Michael Sterios are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Carleton Carl has sinced written about articles on various topics from Debts Loans, Car Loans and Debts Loans. The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting First Mortgage From C4F as a finance. Carleton Carl's top article generates over 49500 views. to your Favourites.
Michael Sterios has sinced written about articles on various topics from Internet Marketing, Adverse Credit and Home Improvement. Visit to submit your details to a panel of independent. Michael Sterios's top article generates over 165000 views. to your Favourites.