First time buyers guide

Continued from Feburary Issue

If you think you can afford to buy, the first step is usually a mortgage How do you get a mortgage and how do you know you ’ ve found the right one? Here’s what you need to know

WHAT TYPE OF MORTGAGE SHOULD YOU CHOOSE?

There are a lot of different types of mortgages out there Interest-only mortgages, repayment mortgages, fixed-rate tracker mortgages it can feel like a lot of information to take in, but it’s more straightforward than you think. For most people, a repayment mortgage is the most straightforward option. When in doubt, a broker or mortgage advisor can talk you through your options

DO YOU HAVE A BIG ENOUGH DEPOSIT?

In most cases, you’ll need at least a 5% deposit to get on the housing ladder but the average deposit amount is about 16%. The bigger the deposit you put down, the less you have to borrow which can save you thousands of pounds in interest payments in the long run.

When looking at mortgages, try to ignore the jargon. A fixed-rate mortgage is exactly what it sounds like you have one fixed interest rate for the entire mortgage An interest-only mortgage is also what it sounds like you ’ re only paying the interest on the loan, not the repaying the loan itself It’s that simple