Getting Your First Home

Although many children are now staying at home longer and longer, often throughout university and well into their first job eventually they do leave. However, as many of us have heard in the news first time buyers are finding it increasingly difficult to qualify for a mortgage and many have little or no deposit. Getting a foot on the property ladder is a crucial milestone in many people's lives and there a number of options available to help the transition. When a traditional repayment mortgage is out of the question what options are there?

The mortgage situation is slightly different for first time buyers than for those of us who already own a property. If you have a house to sell it will be relatively easy for you to get a simple repayment mortgage as long as the value of the property you are buying is not vastly over your income.

Some lending firms may offer a guarantor option. This is when a parent, relative or other responsible adult acts as a guarantor. This means they will be liable to contribute if you default. This type of agreement is often used when young people are renting accommodation, for example at university.

Some may enter a joint agreement with members of their family, ao they combine their capital each month.

Choosing a mortgage with a high loan-to-value – meaning a deposit can be relatively small - could also be an option, although these can sometimes be hard to find.

Low-cost ownership schemes may be useful, where a dwelling can be gradually purchased from the council or a housing association.
When considering buying for the first time, it may also be valuable for people to add up all the additional costs they are likely to incur – including Stamp Duty, Land Registry fees, paying for the services of a surveyor and estate agent levies.

Another consideration is the area where the property is to be purchased. There is still a noticeable difference in house prices between the North of the country and the South.

If you want to know more about mortgages why not ask AnswerBank Business and Finance.