How to Plan For First Time Buyer Mortgage

The real estate in the UK is coming out of the period of recession. House prices are rising and so are the challenges for those looking for first time buyer mortgage. However, the inflated house prices are not restraining people from trying for their first mortgage loan. Mortgage industry has become competitive and the first time home buyers can try different and flexible mortgage products available. Here are some good tips that can help you in this direction.

Deciding the Mortgage Deposit

Mortgage deposit is the amount a lender expects from the mortgage borrower to contribute in the purchase of a house. Unfortunately, the deposits expected by the mortgage lenders after facing recession period have become larger than before. However, arranging for the large deposit can obviously enhance the chances of getting a good mortgage plan. It is good if you rely upon your parents or other family members to secure the required deposit for you.

Joint Mortgages

The concept of joint mortgages works if you are able to find someone with a wish to invest in the property you are eying at. This can help you share the purchasing prices and the burden of mortgage loans. However, it is better to have someone known to share the property with. Shared ownership should not turn out to be a daunting experience in the long run.

Mortgage for Self Employed

Self employed individuals are often considered to be at risk by the potential mortgage lenders. Preference is given to those with a regular source of income through a regular job. However, self-employed people have a solution in the form of self certification mortgage. Using this, an individual can obtain mortgage loan by certifying the income he or she claims to earn through their business. As obvious, this type of mortgage has higher rate of interest and require the borrower to make a higher deposit.

Self Certification Mortgage is often considered as a temporary solution by a borrower to at least get into the housing market. Once he or she establishes reputation, switching to other mortgage plans with better interest rates become easy.

Some Other Tips

Consider buying an Interest-Only Mortgage plan if you expect your income to expand in the future. This arrangement helps by allowing lower monthly repayments in the beginning. I

f possible, you can consider relocating to a place with better prospects of obtaining First Time Buyer Mortgage.

Buying home mortgage to own a house is always better than paying the rent. So, get ready to face the challenges of first time buyer mortgage.