Property Q & A: I am a first time buyer and need a mortgage.

Q: I am a first time buyer and need a mortgage.  People keep saying the property market is back on the move but I don’t know how this will affect me?

A: Figures show that almost 330,000 people bought their first home last year. That is the highest figure since 2007. The number of first time buyers has risen by 50 per cent in the last two years, meaning there are more first time buyers getting on the property ladder than there has been for some time. There are a number of factors that have contributed to this including the recent changes in the stamp duty rates and, what is perceived to be, the low cost of mortgages.

Mortgage lenders are in competition with each other and are therefore competing for your business. For the last few years, they have penalised borrowers who were only able to raise a deposit which was a small percentage of the purchase price of the property and therefore, first time buyers are the ones who have been most affected by this. However, whilst it would still beneficial for you to be able to raise a deposit of at least 20 per cent of the purchase price, lenders have cut rates to buyers with smaller deposits.

There are a wide range of mortgage products currently available.  Apart from the traditional mortgage where your repayments pay interest and an amount off the principle, there are also interest only mortgages available, mortgages which are linked into life insurance, mortgages which are linked into pensions, fixed rate mortgages, capped mortgages, etc. and it does take some effort to get your head around the different products available.

I would advise anyone who was obtaining mortgage finance to approach an independent mortgage broker, one who is not tied to a particular lender.  The broker will trawl through the different mortgage products and recommend one which will be tailor made to your circumstances and your requirements.


For further information on legal services surrounding buying or selling a property, contact Graham Ireland on 01254 272640 or email