If you are a first time buyer and you want to find and obtain the right mortgage in these difficult times, then here are a few tips to help you along the way.
1) Think carefully how much you could comfortably afford on a monthly basis. It is a good idea to write down all your expenditures by looking at your bank statements over the last 6 months, and also taking a conservative estimate of your income if it is not fixed. Being able to comfortably afford your new mortgage should be your primary consideration.
2) Decide whether you would like a fixed rate or a variable rate mortgage. Do you think interest rates are going to go up or down? Do you want the stability of payments offered by a fixed rate mortgage, or would you prefer to take a gamble on interest rates? Could you afford your mortgage if interest rates go up and you have taken out a variable rate mortgage?
3) Visit your bank or building society first. As they already know you, and you are already a customer of theirs, this is always a sensible place to start. See what they have to offer you.
4) Having already been to your Bank or Building Society, you should now contact an independent whole of market mortgage adviser and see what they recommend. He or she should be able to research the whole market for you and provide you with advice and recommendation. You can establish whether you are better to proceed direct with your bank or with a mortgage deal recommended by an independent mortgage adviser.
5) It is great to get a range of quotes and opinions, but avoid having too many credit searches. Any more than 2 credit searches within a month could negatively effect your credit rating.
Hopefully this has been helpful for you. Whatever you do, make informed sensible decisions which remain focused around affordability. Affordability should always be the most important thing, as failing to pay your mortgage can lead to property repossession.
First Buyer Mortgages offers further useful information and links to advice for those looking for first time buyer mortgages in the UK.