Compare mortgage rates
When searching for affordable mortgage rates, many first time buyers often find that getting a mortgage deal that is best suited to their circumstances is perhaps not as easy as they had once thought.
To get the best mortgage deal available, prospective borrowers are advised to use the range of consumer tools we made available, such as our mortgage comparisons tables and repayment calculator.
Mortgage rates for first time buyers will obviously vary a great deal depending on type of loan that is selected. The following is a brief explanation of some of the various types:
For first time buyers, these types of mortgage deal are often chosen, as they will offer a good deal of financial security, assuming the buyer can afford the monthly repayments. Borrowers looking for a repayment mortgage will be expected to regularly repay the initial loan, with interest, until the entire amount has been completely paid off.
Although monthly repayments may be more when compared to those of an interest only mortgage, once the loan has been completely paid off, the customer will own the property outright.
Interest Only Mortgages
An interest only mortgage deal may be more suitable for customers who perhaps do not have as much money available when searching for a suitable loan. The borrower will only be expected to repay the interest on their loan on a monthly basis.
Once this has been fully repaid however, first time buyers should be aware that the entire loan will have to be repaid in full at the end of the agreement by using a suitable investment vehicle.
Mortgage rates for first time buyers with regards to both types of loan are generally calculated based upon a number of factors, including:
- The type of interest rate deal (tracker, fixed rate, offset, variable etc)
- The size of the deposit the customer is willing to pay
- The customers previous financial history and credit rating
If you are a first time buyer looking for affordable mortgage rates, feel free to consult our mortgage comparisons table.