First-time buyers

The prospect of buying your first home can be both daunting and confusing.  This should be fun, not frightening.  It’s easy to see why some people can feel overwhelmed. 

There are many different terms thrown at you from the time  you start looking   – repayment mortgage,  fixed rates,  tracker products, standard variable rate,  etc..  Not to mention the fact that you may not know much about the property buying process in general.

You don’t have to figure it all out by yourself. Not only do we find you the best mortgage product for your situation, we explain the different  options available to you as a first time buyer and assist you at every stage of your homebuying journey.

Mortgage Help for First-Time Buyers

There are a few points  to understand before we get started.

How Mortgages Work

• A mortgage is a loan you take out with a lender for a number of years. The length of time over which you have a mortgage is called your “mortgage term”.   Mortgage terms can be anywhere between 5 and 40 years. 
•  A mortgage is a secured loan, which means this is secured against a property usually the house or flat  you want to buy with the mortgage.  Using a property as security for a loan means that the lender can repossess this if you don’t keep up the monthly mortgage payments. 
• To take out mortgage, you must put down a deposit of at least 5% of the purchase price, the mortgage itself makes up the difference. 

About Mortgage Interest Rates

• When you take out a mortgage,  you’re given an introductory interest rate, typically between 2 – 5 years.
• A popular product for first-time buyers would be on a fixed rate basis, where interest is charged at a set rate for a certain period of time.   Fixed rates are particularly good for those who like to budget.  After the introductory term period ends you’re transferred onto your lender’s SVR (standard variable rate). This is the interest rate the mortgage company sets themselves. and the SVR is normally higher than the introductory rate.  To avoid paying this higher rate of interest you can consider a remortgage onto a new product with a different company, or take out a new rate of interest with your existing lender.

Paying Back Your Mortgage

• You pay back your mortgage with interest. 
• There are two main types of mortgage which determine how you pay the lender - repayment and interest-only:
• With a repayment mortgage, you pay back some of the outstanding mortgage balance – i.e. the amount you borrowed each month alongside interest payments.
• With an interest-only mortgage,  you only make interest payments each month and repay the full mortgage at the end of the mortgage term. There are risks associated with interest only and these need to be fully discussed with you before proceeding.