First Property

However, you need to get a mortgage and lenders are being pretty picky about who they lend to and you need to consider the following:

Below are a few tips to help you onto the property ladder.

• Always get independent advice from an FSA (Financial Services Authority) regulated broker. This will not cost you anything and the broker is not tied to any lender so will be able to help you look at the whole market to find the best deal.
• Ask questions. Are there tie-ins, what fees do you have to pay, how much can you borrow etc etc?
• Try to get as large a deposit as you can (can your parents help you out?) as this will help you get a better del at a lower interest rate. Anything considered slightly risky by the lenders, including high LTV (loan to value) will go against you.
• Don’t make multiple applications to lenders. If each lender does a credit search this will affect your credit rating and possibly preclude you from some of the more attractive deals and end up costing you money.
• Don’t borrow more than you need to and keep within your means (the most important factor being that you do not overstretch yourself on the mortgage payments).
• Resist the temptation of going for any ‘incentives’ like a cash back or low start mortgage. The banks, building societies and lenders are not charities and these incentives are there to lure you into ‘buying’ their products and inevitably this will cost you in the long term.
• A repayment mortgage is always a better option than an interest only mortgage. Although an interest only mortgage means lower monthly payments how are you going to pay off the loan at the end of the term?