First Time Buyers Fail To Shop Around
Almost two thirds of first time buyers accept the first mortgage they are offered and fail to shop around, often missing out on better deals.
Many first time buyers feel pressured by their estate agents into quickly organizing a mortgage for fear of losing out on a property or are attracted to a low interest rate without looking at the mortgage deal as a whole.
However, with such a vast range of mortgage lenders to choose from, first time buyers are well advised to step back and do a little research before they commit.
There are a number of places to find good mortgage deals:
Speak to your bank
Your bank or building society may provide special offers to their account holders, but don’t feel that you have to accept their offer through customer loyalty as there are many other places to look.
Consult with a financial adviser
Financial advisers can offer you a range of mortgage deals to choose from that are appropriate to your circumstances. Some financial advisers offer free advice, but can only provide a limited range of mortgages, through which they earn a commission.
Independent financial advisers will offer a wider range of deals, but you may need to pay them to provide this advice. However, this is often a worthwhile investment, as commission earnings do not influence the adviser, so the mortgage is more likely to meet your requirements.
Get on the net
A search on Google will generate a list of hundreds of US mortgage providers to choose from. Many will have online mortgage calculators, to give you an idea of your repayments.
Alternatively you can use financial comparison sites, such as MoneySupermarket.com to do the work for you. Simply enter your requirements and let the comparison site search hundreds of providers to provide you with the best deals.
Don’t always depend on the rate
Don’t always assume that a low interest rate makes a cheap mortgage. Providers often use low rate deals to attract new customers, however you may end up paying more money in the long-term.
Check the small print of the mortgage and find out if you will be penalized financially for opting out of the deal early or if there are any hidden costs.
Don Suter is Managing Editor of the UK Property Portal (http://www.ukpropertyportal.co.uk), an online directory. Mortgage Rates Credit Cards Refinance Home
Property has become very affordable for first time buyers, however many are still failing to be able to get their foot on the property ladder. While many first time buyers may be able to afford the monthly mortgage repayments, they are struggling to find the deposit for the mortgage. A typical deposit is currently around 20% to 35% of the cost of buying the property. This means that if the property is 100,000 they have to find a deposit of at the very least 25,000.