First Time Buyers

Escalating house prices over recent years have made it difficult for first time buyers to get on the property ladder, however the possibilities and opportunities of auction properties are open to us all.

Buying at auction is one of the best ways to snap up a bargain, and that bodes well for first time buyers. Buying your first home, however you do it, can be a daunting prospect, so check out our FAQ's to help you understand the processes involved when buying property at auction.

It has become increasingly challenging for first time buyers to secure homes. Mortgage lenders are no longer lending at high LTVs and, even at the very lowest end of the current market, the prospective homebuyer would need to raise funds in the region of £15,000 - £25,000 to meet lenders' criteria.

For those starting their careers, or already with children, climbing onto the property ladder may seem overwhelming, but long term renting isn't any more reassuring. In fact, the cost of renting property may currently equal the cost of a monthly mortgage repayment, and quite often even exceed it.

Guide for first time buyers

One of the most important first steps is to seek first time buyer mortgage advice to find out how much you can borrow and what the monthly repayments will be. Good mortgage advisors will know about all the UK first time buyer mortgage deals available at any one time.

Buying a home will inevitably cost more than you think as the rising cost for many homebuyers is that of mortgage arrangement fees. Lenders offering the best rates can add more than £1,000 worth of fees to deals, or add a percentage of loan charges, which can be very expensive. You will generally be offered the chance to add fees to a loan, which can be useful, but be aware you will pay much more then the upfront cost of the fees, as interest will be charged on the sum over the life of the mortgage.

Additional costs

There's also the cost of running your own home to take into account. You will have to pay for buildings insurance, life insurance (for a joint mortgage and/or dependents), contents insurance, gas and electricity bills, council tax, water rates, ground rent and perhaps service charges.

First time buyer mortgages