First Time Buyer 3 Year Mortgage Deals
As a first time buyer, finding a 3 year mortgage deal may appear to be a daunting prospect with so many different policies available. However, it is important to remember that by conducting suitable research and comparing mortgages, first time borrowers may be able to find a much better deal from providers.
Before searching for an appropriate 3 year mortgage deal, first time buyers should carefully consider exactly what type of repayment deal they will require. The following is a brief explanation of each:
Repayment mortgages are generally more popular due to the high level of security that they provide customers with. Customers will be expected to repay a portion of the initial loan, with an added interest rate included on top, until the entire mortgage has been repaid in full.
Once this has been fully repaid, most customers are generally guaranteed to own the property outright.
Customers repaying an interest only mortgage will only be expected to repay the rate of interest during the course of the loan, making payments that much easier initially.
However, it should be remembered that the borrower will still be expected to repay the entire borrowed amount at the end of their mortgage. Customers must have invested or saved enough money to make this payment at the end, or will risk losing the property.
Once this decision has been made, a suitable interest deal should be selected by first time buyers, a 3 year mortgage policy may come with a number of strengths and weaknesses. Here are some examples of the various different types of 3 year interest rate deals that are available:
- Fixed rate mortgages
- Tracker mortgages
- Variable interest rate mortgages
If you are searching for a suitable 3 year mortgage deal, you may wish to see our mortgage comparisons tables above for more information on the various offers that are available.