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Finding first time mortgages for the under 35s

The days when banks and building societies delighted in offering half a million to anybody who asked nicely are long gone. It is getting increasingly tough to secure a loan for that first property. Those looking for first time mortgages for the under 35s need to study their tactics before filling in the application.

Deposits

Deposits are the key to getting hold of a house key. Occasionally it is still possible to find 100% loans, from the likes of the Aldermore Bank, but the deals are rarely attractive and the conditions stringent. A 5% deposit on a mortgage gives you options, while a 10% deposit gives you bargaining power. Don't be afraid to spend another six months or more saving hard to build up the deposit. Who knows, your dream house may even drop in value in that time.

Comparison sites

Comparison sites like moneysupermarket.com are a good way of making at-a-glance comparisons, but can be a little frustrating. Their best deals on first time mortgages will show attractive interest rates, but a little scrutiny reveals that these are only available to the lucky few who can raise 30% or 40% deposits

Fees and extras

Study the fine print for the best deals. Often, tempting interest rates are offset by high fees. Fees are less significant if you are borrowing a large sum, but can make a noticeable difference to repayments on smaller loans.

Be wary of mortgage deal extras. Banks are still keen to sell insurance cover, unemployment protection and health cover, especially to under 35s, in the hope of signing up customers for a lifetime of premiums.

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