Mortgages for first time buyers
Deciding where you want to buy your first home is only the first step in getting the keys to your first home. The process may seem a little overwhelming and daunting. From finding the property, getting the best mortgage deal to liaising with estate agents and solicitors.
There are also a lot of different terms thrown at you from the second you start looking at mortgages – repayment mortgages, fixed rate, standard variable, etc.
Simply, a mortgage is a loan you take out with a lender for a number of years.
What’s the tentative length of a mortgage loan?
The length of time over which you have a mortgage is called the mortgage term. A mortgage can be anywhere between 5 and 40 years.
A mortgage is a type of secured loan, which means it’s secured against a property- usually the property you want to buy with the mortgage.
What’s the collateral for first-time mortgage buyers?
Using a property as security for a loan means that the lender can repossess it if you don’t keep up mortgage payments.
To take out a mortgage, you must put down a mortgage deposit of at least 5% of the purchase price, the mortgage will make up the rest.
The good news is you don’t have to figure it all out by yourself.
Reliable mortgage brokers or mortgage advisers should help you find the best mortgage deal for your situation and assist you at every stage of your home buying journey.
