The First Time Buyer's Mortgage Guide

It isn’t unusual for first time home buyers to make poor decision in regards to their mortgages. For those who have made up their minds to get a mortgage to finance their first home, it is very important to do adequate research to find out what is available and what you are eligible for.

There are many companies that offer mortgage advice but you should also look into the market yourself to see what is out there.

The first thing to take into account is how much deposit you have saved in relation to the cost of the house and whether mortgage companies will be willing to lend you money based on your savings. Basically, the bigger deposit the more mortgage companies will be willing to offer you a loan. Next, and many people are not aware of it, the better your credit score the easier it is it get a mortgage. There are free credit check websites that you can use to find out how credit-worthy you are.

Lenders, whether they are looking at new home buyers or a remortgage, will also look at how much you are earning every month in relation to what you are spending. This reassures them of your ability to meet your monthly payments. Keep in mind that this includes expenditures like life insurance and car insurance.

If you haven’t saved up the 25% that is required to get a mortgage, you can turn to the Help to Buy scheme that is intended to help first time buyers who have small deposits. With this scheme you can buy a house with a deposit as small a 5% of the total value of the property.

There are 100% mortgages but you should be very careful about these; if you borrow more than the house is worth you fall into negative r\equity right away.