Tips for First Time buyers

10 tips for finding the right homeloan.

What types of mortgage are available to me?

Most lenders offer a range of fixed and capped rates, discounts and flexible mortgages. Some offer base rate tracker mortgages, and some will give cash-backs.

What would my monthly payments be?

Ask for a quotation. We cover the whole market so you do not need to go anywhere else and we are completely independent.

Are there any redemption penalties?

Fixed, capped and discounted deals may carry redemption penalties tying you to the lender after the end of the fixed, capped or discounted period.

What will happen after a fixed, capped or discounted period?

Some lenders will automatically write to offer you new products. Others will just put you on their standard variable rate and hope you don't notice. In the latter case, you need to be positive and go out and look for a new deal when your first one runs out.

Is there an arrangement fee?

Yes many lenders will charge a fee.

Are there any incentives?

Because the market is competitive, some lenders offer special incentives to get first-time buyers' business. They might pay for your valuation and/or legal fee, or waive the arrangement fee, for example.

Are there any tie-in insurances

some lenders may insist on taking on insurance.

Is there a Mortgage Indemnity Guarantee (MIG) premium to pay?

A MIG, also know by a number of names such as a Higher Lending Fee, is charged by many lender, on mortgages representing more than 90% of the property's value. So it hits many first-time buyers. It is an insurance that protects the lender against you defaulting on your mortgage payments, but you the borrower pay for it, and it offers you no protection at all. The costs can run to thousands of pounds, although some lenders have scrapped MIGs altogether.

How will interest be charged?

Some lenders charge and apply interest annually, so your monthly payments are only totted up at the end of the year and taken off your debt. This means that you have been paying interest on the initial sum all year. A fairer method is to calculate and apply interest daily. Some lenders automatically apply daily interest, but with others you have to request it.

Is the mortgage flexible?

Mortgages calling themselves flexible should allow you to underpay, overpay, take payment holidays, apply interest daily and carry no redemption penalties.

Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.

The overall cost for comparison is 7.1% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. There may be a fee for the mortgage advice. The precise amount will depend on your circumstances, but we estimate it will be 1.5% of the loan amount with a minimum fee of £500 added on to the loan.

Mayfair Consulting Limited is an Appointed Representative of The Mortgage Times Group Limited, 279 Tottenham Court Road, London , W1T 7RJ , which is authorised and regulated by the Financial Services Authority no. 303007.