Buying A Home? Know About The First Time Buyer Mortgage

By Author: Mark Scragg
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Buying a home is one of the most rewarding yet stressful experiences in everyone’s life. In this article I’ll explain and simplify the process of buying a mortgage. As we know, the difficulties of getting on a property ladder have been well documented in recent years. High house prices mean high regular payments and high deposits. This means a challenging task for the first time buyers. They must look low and high for a property they can afford and then locate a bank/lender to find a loan which suits their financial circumstances.

Here you will get sound knowledge on first time buyer mortgage in Stafford. Keep reading...

A mortgage is normally a big loan and home can be repossessed by the bank if the home owner fails to keep up with repayments. Thus, it is vital to find the right product first time around.

Fixed Rate Mortgage

Traditionally, for first time buyers, fixed rate mortgages have been very popular as the interest rate is fixed on initial period, frequently two to five years. This tells the borrower ...
... exactly the amount they have to pay from one month to the next and can be useful for those who are getting to grip with a first mortgage.

In fixed rate mortgage, you can fix your mortgage for either 2 years or 5 years and moreover, some banks also allow 10 years. If you plan to move at that period, some banks allow you to port the mortgage to the next property. You also need some extra borrowing and that will be on a new term, new rate and a sub-account. Thinking how long should you fix it for? Here is the answer. If the property you are going to buy is the only one, then a longer term may be better.

Tracker Rates

Similar to fixed rate mortgages, you can set a certain period of time but the amount you pay will change. Tracker rate mortgages mean the banks give you an amount like 3% and put that on top of the Bank of England base rate. So if the base rate was 1% and your tracker was always 3% above the base rate, then your rate would be 4%. Your mortgage amount will follow the increase and decrease of base rates.

In both fixed and tracker rates, if you wish to break the contract with the bank or lender, you should pay fees. And the fees vary depending on the bank or lender.

Be aware of the plans and make a wise decision. Remember, buying a home/property is a long term investment and it should be handled with care. So, it’s better to hire a mortgage broker to make your transaction a successful one.

Looking for assistance in first time buyer mortgage in Stafford? Then you are at the right place. The author of this article gives you info on choosing the right mortgage. Visit http://www.themortgagebrokergroup.co.uk/first-time-buyer-mortgage