info@clamso.co.uk
Follow us on Social Media
Facebook-f Linkedin
CMS

First Time Buyers

Buying your first home should be fun – not frightening. It’s easy to see why some people can feel overwhelmed though.

There are a lot of different terms thrown at you from the second you start looking at mortgages – repayment mortgage, fixed rate, standard variable rate, etc. – not to mention the fact that you might not know much about the property-buying process in general.

You don’t have to figure it all out by yourself. Not only do we find you the best mortgage deal for your situation, we explain the different mortgage options available to you as a first-time buyer and assist you at every stage of your homebuying journey.

Mortgage Help for First-Time Buyers

There are a few things to understand before we get started.

  • A mortgage is a loan you take out with a lender for a number of years
  • The length of time over which you have a mortgage is called your “mortgage term”
  • Mortgage terms can be anywhere between 5 and 40 years
  • A mortgage is a type of secured loan, which means it’s secured against a property – usually the property you want to buy with the mortgage
  • Using a property as security for a loan means that the lender can repossess it if you don’t keep up the mortgage payments
  • To take out mortgage, you must put down a mortgage deposit of at least 5% of the purchase price – the mortgage itself makes up the rest
  • When you take out a mortgage, you’re given an introductory interest rate for the first few years – typically between 2 – 5 years
  • A popular kind of interest rate for first-time buyer mortgages is a fixed rate, which is where interest is charged at a set rate for a certain period.  Fixed rates are particularly good for those who like to budget
  • After the introductory period ends, you’re transferred onto your lender’s SVR (standard variable rate), which is the interest rate they set themselves
    • The lender’s SVR is normally higher than the introductory rate, so you would often remortgage onto a new product with a new lender when your introductory deal ends or take a new product with your existing lender
  • You pay back your mortgage with interest
  • There are 2 main types of mortgage which determine how you pay the lender – repayment and interest-only:
    • With a repayment mortgage, you pay back a bit of the outstanding mortgage balance – i.e. the amount you borrowed –  each month alongside interest payments
    • With an interest-only mortgage, you only make interest payments each month and repay the full mortgage at the end of the mortgage term
First Time Buyers

Clear, Simple, Advice is our benchmark.

Facebook Linkedin

Newsletter

Sign up to the Clarity Mortgage Solutions Newsletter for monthly updates regarding mortgages and protection for your home and family.

By submitting this form you give consent to receive our newsletter, For Further information please see our privacy policy.

Clarity Mortgage Solutions Ltd is an Appointed Representative of Home Loan Partnership Ltd which is authorised and regulated by the Financial Conduct Authority. Registered Office: 14 Albert Street, Monifieth, Angus DD5 4JS.  Registered in Scotland, Company number SC498498.  

The guidance and/or information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

A fee may be payable, please speak to your advisor for details. Your home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other loans secured on it.

© 2021 All Rights Reserved  Clarity Mortgage Solutions | Website Designed & Hosted By Moray Digital Ltd

×

Hello!

Click one of our representatives below to chat on WhatsApp or send us an email to info@clamso.co.uk

% %
#

Powered by WhatsApp Chat


          
          

            
            
              
            
          

        

      

              
                  
                ×
                  How can I help you?
                                  Available on SundayMondayTuesdayWednesdayThursdayFridaySaturday