First Time home Buyer Mortgage RatesFor the first time at home buyers mortgage rates
When you buy your first home, the 5% is usually in the shape of a down payment - a tough, cool lump of money from your pocket. When you take out or move a mortgage, you can use the capital in your existing home as a caution. If, for example, you wish to buy a £300,000 worth of real estate, you must make a down payment (or equity) of £15,000 (5%) to achieve an LTV of 95%.
When you are a first time buyer, especially in an upscale part of the UK, you may only be able to make a 5% down payment. However, be warned: with an LTV of 95%, you only have a mortgage with a relatively high interest rating (about 3% to 4% today).
When you can cut a large down payment or buy a cheap home, you will be able to activate much lower interest rates as your LTV falls to 90%, 85% or 80%. A further optional feature is the use of one of the state Help To Buy programs such as Shared Ownership, which allows you to first buy a 25% stake in the real estate and then increase your size over time.
Since you only buy 25% in advance, you will have to take out a smaller mortgage and deposit. What is more, you will be able to buy a mortgage for a small amount. When you have capital in your present home - if your home is more valuable than what is left of your mortgage - then you can use that capital as a down payment for a return to your present home or a new mortgage for the move.
So for example, if your top floor apartment is worth 300,000, and you have 260,000 pounds on your mortgage, you have an equity-to-liquidity of 40,000 pounds - which is a fairly large deposit on a 95% LTV mortgage! They can usually find out your home mortgage debt by looking at your latest assignment from the lending agent - or alternative, call them up and ask.
They can find out the approximate value of your home by researching on-line - or asking a real property broker for a rating. Check out our mortgage guidelines for what you can buy - and some tips on how to maximize how much you can lend, or how to lower your LTV and your total month's rent.