Boost your chances of getting a mortgage as a first time buyer

As many people are already aware getting a mortgage can be difficult for anyone these days, with the banks exercising extreme caution over who they lend to and putting a range of restrictions in place with regards to mortgage loans. However, one of the groups most likely to experience difficulties when it comes to mortgage loans is first time buyers.

There are many first time buyers that are desperate to get onto the property ladder, and have been for some time. However, for many years these potential buyers have faced difficulties when it comes to getting a property. Until the global credit crisis swept the nation first time buyers could get mortgages without even having to put down a deposit in most cases, but many could not afford the extortionate house prices that resulted from the many years of house price inflation.

Once the credit crunch hit property prices began to tumble, which is what many first time buyers may have been waiting for. However, at the same time as this the banks started to really rein in their lending, wiping out the 0 percent deposit that so many first time buyers had come to rely on and demanding huge sums up money upfront before even considering granting a mortgage loan. This has left first time buyers out in the cold once again, albeit for different reasons.

Whilst there is no doubt that first time buyers still face many challenges when it comes to getting a property there are some steps that they can take to try and improve the chances of getting onto the property ladder. One important thing to remember is that lenders are being very cautious over who they lend to, so it is advisable for first time buyers to be prepared and be aware of their credit rating. Before applying for a mortgage buyers are advised to order a copy of their credit report and check how good the rating is, as this will provide an idea of how likely it is that a mortgage will be granted.

Another think to consider is the level of deposit that the lender will want. Before wasting time looking at properties and applying for mortgages first time buyers should plan their budgets and spend time saving as much as possible, as the higher the deposit the more likely it is that an affordable mortgage will be granted by lenders.

Finally, more and more first time buyers are now turning to shared equity schemes, where they get a mortgage out to purchase a percentage of a property and rent the remainder from a housing association until they can also afford to buy the remaining share, which can be done in stages. This is a more effective and affordable way for first time buyers to get onto the property ladder these days, and it is possible to get a brand new house without having to take out a huge mortgage by using this option.

Tags: first time buyer, potential buyers, ladder, check, finance

High demand for property creates house price bubble

According to a recent report the high demand for property from potential buyers has resulted in a house price bubble being formed in the UK. Read more

Tags: recent report, base intrest rate, estate, housing bubble, property demand, potential buyers, property

RICS states property sales levels may rise

Surveyors from the Royal Institute of Chartered Surveyors have indicated that there could be an increase in property sales over the coming months, as the level of interest shown by potential buyers has been increasing lately. Read more

Tags: property enquiries, home, Business Finance, property sales, Royal Institute of Chartered Surveyors, actual sales, lowest level

Try before you buy housing could prove effective

A recent report has shown how some housing developers are now trialling a scheme where a potential property buyer can try out the property that they are thinking of buying for a day or two before they make a decision or commitment. With house sales falling as a result of right credit conditions, falling house prices, and the global credit crunch, those that are able to purchase often need more persuasion and it seems that this try before you buy method could help developers to increase sales and buyers to enjoy increased peace of mind when it comes to making a purchase. Read more

Tags: day, potential buyers, older age, road, age bracket, households, Business and Economy, inflation uk economy