First Time Buyers

Over recent years there’s been a steady increase in the number of people purchasing their first home. While the financial crisis of 2008 resulted in ‘generation rent’, financing options have responded to the needs of first time buyers in the current climate. These options have helped first time buyers increase by 75% since the year of the recession. But keep in mind that a bigger deposit will result in a larger choice of deals and a lower mortgage rate. Currently the market is opening up with more banks and building societies lending up to 95% of the property’s value – a 95% LTV.

Here, you will need a minimum deposit of 5%. You will have a wider choice still if you can put down a 10% deposit. However, the very best rates are reserved for borrowers with a big deposit – if you can put down 40% of the property’s value, you’re likely to get a lower interest rate in return. It therefore makes sense to save as large a deposit as possible because you will have access to a wider range of mortgage products and be able to benefit from more competitive rates. The average deposit for a first-time buyer is substantially lower than it is for those already on the housing ladder, so even if you save up a little bit more, you’ll give yourself a great chance of getting a better rate.

However many house buyers find their dream home but lose out because they have failed to secure a mortgage. At the Independent Mortgage Store we will have your mortgage agreed in principle prior to finding your ideal home. We take all the hard work out of searching the market and make the whole process enjoyable, quick and easy.