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Step onto the Property Ladder

With numerous deals to pick from, first time buyers may find it challenging to get the the most suitable deal, The Mortgage Hut can provide all the help and advice you’ll need to make your first step on the property ladder.

First Time Buyer Mortgages

You may have questions about ways to get a mortgage and which type will be suitable for you. Should you choose a fixed rate, a discount rate, capped or tracker mortgage?

We’re here to help you understand the options available and find the mortgage that most suits your circumstances.

  • Most First Time Buyers require a high loan-to-value (LTV) mortgage. These are mortgages that are designed for first time buyers who have a reduced deposit. It is typical for 90% loan to value mortgages to have higher than average financing charges and higher rates of interest - so make sure you talk with a trusted mortgage broker such as The Mortgage Hut to ensure you get the most suitable deal!

  • With banks often requiring a minimum 10% deposit, getting on the property ladder is becoming increasingly hard, but there are several other mortgage options which may help such as, Shared Ownership, Guarantor plans and Government backed schemes such as Help to Buy.

  • Other costs first time buyers will need to consider include a mortgage admin or arrangement fee. All lenders will also typically require a basic valuation, however you may wish to upgrade this to a homebuyers report or full survey.

Most Suitable Mortgages for First Time Buyers?

We can help you understand the differences between various offers, and ensure you secure a mortgage that fits your situation. Here are a few of the major mortgage kinds and ways to pay back that you may wish to think about.

Fixed: Pay a set rate of interest for a predetermined period.

Tracker: Your rate of interest tracks the Bank of England bank rate (for a predetermined period) and can increase or fall .

Discount: Offers a price reduction on the Lender’s Standard Variable Rate (for a predetermined period).

Capped: Your interest rate will not increase above an agreed level for a set time period.

Bank account: Integrate a bank account with a mortgage, enabling you to make overpayments or have credit on your current account which may reduce interest payments (often calculated on a daily basis).

Offset: Hold all your various other loans with the exact same lender.