First Time Buyer Mortgage

First time buyer mortgage options are available from many different lenders, so if you are buying a home for the first time and want to make sure that you are getting the best deals, search multiple lenders through our service and find the ones that will benefit you the most. For many first time buyers, there are mortgage options that are somewhat specialised and that are not available to others that have already taken out mortgages in their lives. In order to qualify for these loans, you will want to discuss your options with several different lenders in order to find the best rates and the best deals. If you do not compare your options for a first time buyer mortgage, you could be passing up some great opportunities, so make sure that you compare thoroughly.

Popular Mortgages

One of the most specialised mortgage options for a first time buyer is the 100 percent mortgage. This is specifically designed to make taking out a loan more attractive and less intimidating. Taking out a loan that you will be paying back for the next 25 years or so will be one of the largest commitments you make financially in your life, so it is important to know how it will impact your finances, as well as if you can afford the monthly payments.

A 100 percent mortgage will give you some help if you are a first time buyer, simply because 100 percent of the loan will be paid by monthly payments with no deposit required. Although the interest rates you will pay will be higher, you will still not have to worry about the deposit. This can get you into your new home quickly and have you paying back your loan gradually over time.

Most lenders will give you the option for 100 percent mortgages if you are a first time buyer, which is why you should always alert them to the fact that you are taking out a first time buyer mortgage when comparing mortgage markets. However, if you have been saving up your money for a deposit on a mortgage and are ready to put down a substantial amount of money towards your loan, you will find that you have many other options for a first time buyer mortgage. With a deposit to put down, you could qualify for mortgages that are not just geared towards people taking out a first time buyer mortgage, but that many people opt for when checking out their loan options.

Basic Options

For example, you might find yourself in a position where you qualify for a basic repayment plan, which is one of the more popular plans for paying back your loan, even if it is a first time buyer mortgage. A standard repayment plan is basically as it sounds: the capital of the loan is paid back in combination with the interest so there is a simple monthly payment made that will gradually pay off your loan. This is an easy way to monitor your loan and to get it paid back, so many people will choose this mortgage repayment type, even if they are taking out a first time buyer mortgage.

If you are looking for a first time buyer mortgage and have good enough credit, a deposit, and either a substantial amount of savings, a pension plan, or a life insurance policy that will provide enough capital, you can take out an interest-only loan, which will help you to make lower payments throughout the life of the loan. Any buyer that can qualify for this type of loan would very likely go with it because of the low monthly payments, as they would have more money per month to spend on other expenses. This offers a great advantage and is perfect for people who have plans and finances in place that can cover the capital of the loan all at once, so if you think you might qualify for this type of loan, ask your lender about the buyer options you could have.

Discounting Payments and Deposits

If this is the first loan you are planning to take out, it is important that you ask different lenders about how you can get discounts. Most discounts you can receive will come from having the right insurance on your loan. Almost all lenders will want a buyer to get insurance on their loan, which can get you discounted deposit amounts and discounted monthly payments. Also, you can find some great discount options through getting additional insurance. With payment protection insurance on your home loan, you can also get discounts because you are further securing that your loan will be paid. A first time buyer mortgage will usually come with some discounts so that you can get into your home quickly as well, so don't forget to ask lenders about your options.