First Time Buyer Mortgages
More than half of the nation's working population cannot afford
to buy a home. This underlines the problems faced by first-time
buyers trying to get on the property ladder.
According to the Nationwide Building Society, the average house
in the UK costs £118,500 and the average salary is £25,000.
There are some benefits though, to being a first time buyer;
Interest rates are at the lowest they have been for 30 years which
means that companies are competing for your business.
You need to know how large a mortgage you can get before you
begin searching. There's little point in searching for your dream
house if there's no way you can afford it.
The amount that you can borrow will usually be based on the size
of your deposit combined with how much you earn. Lenders are often
prepared to lend you around three times your annual earnings.
If the price of the property you intend to buy is greater that
£60,000, then you will be required to pay a government tax
called Stamp Duty. The company you are borrowing from will carry
out a valuation of your prospective home to ensure it is worth
the asking price. This will cost you about £150. You may
also be charged an arrangement fee or completion fee.
Solicitor's fees start at about £400 and you should set
funds aside for insurance, moving costs and new furniture.
If you are a first time buyer, you can apply for a mortgage today
with our parent site Loans UK, or view our recommended
list of first time buyer specialists.
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