Home Loans
The present financial crisis has meant that it is now harder for first
time buyers to borrow the money that will get them onto the first rung
of the property ladder. Although house prices are falling rapidly in
some areas, banks are still reluctant to lend money to new borrowers,
in spite of Government efforts to encourage this. The only thing that
first time buyers can be sure of, is that if they hang in there long
enough, they are bound to get a property they want at a rate that they
can afford.
In the last twelve months there has been a rapid increase in the number
of people who have had their home repossessed by the bank or the
mortgage company. A good number of repossessed homes
are auctioned off by the lender in order to recoup at least some of
their money. If you are new to the property market and need a mortgage
provider then your first port of call should be your bank. If the bank
is still refusing new loan requests then you will need to look
elsewhere for your home loan.
Borrowing Capacity
Your borrowing capacity refers to the amount of money that mortgage
providers may be willing to loan you. It looks as though the hundred
percent mortgage is a thing of the past, which means that you will have
to find a much bigger deposit than might have been the case a few years
ago. Depending on the size of the house or flat you want to purchase,
and the lender that you go to, your deposit could be anything from five
to 15% of the full purchase price. If the property you are looking at
is on the market for £90,000 then you may have to find as much as
£13,500, and this makes it much harder to buy your first
property. However, individual lenders and situations differ so you
should check this out with your mortgage provider.
Shop Around
Although it might seem a bleak outlook for first time buyers; you
shouldn’t accept the first deal that you are offered. The beauty
of the internet is that it allows you to compare rates between a number
of different lenders before you take a decision about where to put your
money. Compare the interest rates of different providers and when you
find one that you think may suit your needs you can apply online.
Online loans often get a fast response, which means you are not left
waiting around for an answer. If you are unlucky enough to be turned
down the first time then try the next best option.
Although it is harder at the moment for first time buyers to enter the
property market, it is not impossible, and if property prices continue
on a downward spiral, it may become a lot easier in the near future.
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tel.0870
609 1014
mob.07841 199 247 |
| fax.0870 622 1035 |
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