First-time buyers must look at mortgage ‘options’
October 17, 2007 by admin
Filed under News, News-Mortgages
People buying a property for the first time are urged to look at the options available to them, said FirstRungNow today.
The property advisors said that, while fixed rate mortgages provide a risk free service, first-time buyers have a range of possibilities available to consider.
Helen Adams, managing director of FirstRungNow, said: “I’m not a great fan of interest only mortgages, myself, because it doesn’t actually help you invest towards your own home – you just pay off a loan.
“But certainly there are some other shared equity or shared appreciation mortgages which offer a solution.”
She added that “long term payback periods” were beneficial because they allow repayment to take place over an extended length of time, taking pressure away.
However, she said, some people only look to the short term and want to be financially “mobile” adding that 100 per cent mortgages a good for people who are not able to provide a deposit or pay stamp duty.
Chancellor Alistair Darling recently announced proposals to assist lenders in providing more ten-year fixed rate mortgages.
