Buying a home is a huge financial commitment and it becomes a more daunting task if it is the first home that one is buying.
Once anyone has decided on buying a property it is time to start to think about how much they can afford. On top of the cost of a property there are many other one off expenses involved in buying and also moving. These can easily soon amount to between £2,000 and £5,000. Read more
The number of sales to first time buyers has fallen to the lowest levels for nearly 3 years, according to many estate agents.
This is perhaps surprising as many banks and building societies have been gradually relaxing their lending criteria recently and also making more mortgages available to those with smaller deposits. Read more
The National Association of Estate Agents (NAEA) have stated that just 16% of total sales in October 2011 were to first time buyers, this figure is down from 22% in September 2011. This is the biggest drop since December 2008.
With rising rental costs, strict lending criteria and high deposit demands it is nearly impossible for the average first time buyer to enter the housing market. Read more
Mortgage lenders can charge interest in a variety of different ways and these are the final.
The tracker rate mortgage:
Most lenders offer this type of rate as they are by far the easiest to understand.
This is very similar to a variable rate mortgage, but it tracks the bank of England’s base rate or the London Interbank Offered Rate (LIBOR) base rate (whether they rise or fall). Read more
As well as deciding on a repayment method, borrowers need to look at the different interest rate products on offer.
The fixed rate mortgage:
With a fixed rate deal the amount repaid each month is at a fixed interest rate for a specified period of time, irrespective of changes in the bank of England’s base rate. This is usually around 2 to 5 years, but many lenders are now offering longer terms such as 10 years. Read more
A mortgage is a loan borrowed to buy a property. Then the money is paid back over a fixed period of time, as well as accrued interest. Most banks and building societies offer mortgages, as well as specialist mortgage lending companies.
In a hugely competitive market, building societies and banks are continually updating and extending their range of mortgages. Read more
Once all offers have been made and the seller has decided which buyer to go with it is time to move on to the last and most important stages.
Most property experts advise that sellers should budget for legal fees of between 0.5% and 1% of the property’s value. Read more
Borrowers have to pay interest on any debt and mortgages are no different!
The discounted rate mortgage:
A discounted rate mortgage is usually aimed to attract new customers such as first time buyers; this is because it gives them a little breathing space at the start of the mortgage term. This can help them to recoup money they may have paid out on fees and solicitors. Read more
Choosing an estate agent can be fraught with risk, it is therefore vital that sellers look at a variety of agents before deciding on one. Read more
Selling a property is one of the biggest and most important transactions anyone will make. People have different reasons for selling, from disposing of an investment property to simply moving home. Read more