First time buyer mortgage deals
For first time buyers, finding mortgage deals that are competitively priced is of the utmost importance, as buying property for the first time is commonly regarded as a highly significant long term commitment. To help get the best price on your first mortgage, it is always advisable to shop around using mortgage comparisons as much as possible. Please see our tables for mortgage comparisons on some of the different deals that are available.
There are also a variety of different mortgage deals for first time buyers that may be available depending on the circumstances. The following are some examples of the different interest rate deals that exist:
- Fixed Rate Deals that provide first time buyers with interest rates that are guaranteed to remain the same for the duration of the agreed period.
- Tracker Rate Deals that have their interest rates set according to the Bank of England’s base rate.
- Discount Mortgages may provide customers with a tax free lump sum at the start of the period, although customers should be wary of higher interest at a later date
Before searching for an appropriate interest rate deal, it is also advisable to carefully consider your repayment options.
Repayment vs Interest Only
Repayment mortgages are generally seen the most popular and ‘secure’ type of mortgage agreement, although are initially more expensive compared with interest only mortgages.
Using this type of agreement, customers will be expected to repay the initial loan on a monthly basis with interest included on top, until entire loan has been repaid in full. The more that is paid off, the less that the interest rates will affect the cost of repayments.
Using interest only agreements, first time buyers will only be expected to repay the interest on their mortgage, and not the initial loan until the mortgage period has ended.
Because of this, monthly repayments for this type of mortgage are often less compared with a repayment agreement. This allows customers to spend more money on other things, such as maintenance, fixtures, and furnishings etc.