Most people only purchase a home once or twice in their lives, which can make buying a house difficult because essentially you are walking into the most important decision of your life with absolutely no previous experience under your belt. To this end, the following mortgage tips for first time buyers may be helpful to make sure that you end up choosing the right mortgage for you.
First off, first time home buyers need to realize that a low LTV is not always a good thing. While it can be a struggle to put together a deposit for a new home, the truth is that the less you pay on the deposit the more you will pay in interest over time, making the cost of the home much higher then you originally signed up for. Therefore, while it may take a bit more time to save up for a higher LTV, sometimes it can be well worth it.
Second, it is important to consider whether a variable or a fixed mortgage is the best one for you as a first time home buyer. Variable, or tracker mortgages, can be very appealing right now since mortgage rates are pretty low, but if they jump suddenly you need to weigh up whether you can afford the increase in your monthly payments that will increase along with them.
In other words, do you need a secure rate to budget towards, or is your income high enough that you can afford to take the risk of being flexible?
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