Nowadays, the financial and real estate markets have evolved enormously. In the past, you could only take a standard mortgage that allowed you to buy propriety. But now, the situation is very different. Slowly and silently, with the growth of the markets, the mortgaging industry has evolved to keep up with the demands. So, you can find many special loans such as right to buy mortgages, first time buyer mortgages, and many other options you may want to consider.
In this article, you will learn a lot of useful information about the two most common types of loans that anyone in the UK should consider if they want to buy propriety. So, try to understand the first-time buyer and right to buy mortgages as quickly as possible and see if they are the right choice for you.
Types of Mortgages for Which You May Be Eligible
Well, let’s first try and see the most common mortgages specially created for people with different circumstances. It is in your best interest to check them and see which ones you are eligible for. Of course, you must also ensure that your mortgage brings the most benefits.
- First time buyer mortgages. As the name implies, these mortgages are only for those that want to buy a property for the first time. You may also be sure of this option if you had property in the past, but you sold it and didn’t use this method yet
- Right to buy mortgages. These mortgages are not for everyone. They are specially made for local authority tenants. And they include a discount based on the period and amount of rent you paid in the past. Although the conditions differ for each tenant, if you are eligible for it, you should not ignore it
- Help to buy loans. Not everyone can afford the deposits asked by most lenders. So, the government comes to help you cover the required deposit. For this type of loan, you only need to cover 5%, while the government can provide you with up to 20% loan for a maximum of 25% of the prosperity’s price
- Remortgages. Sometimes, you may have trouble paying your mortgages. But if you pay enough attention to the market. Or, if you have a reliable broker you can contact, you may get a remortgage that provides much better advantages than the current one you have
What Should You Know About the First Time Buyer Mortgages?
The first time buyer mortgages differ from the normal ones based on the requirements you need to meet. As mentioned above, you can only benefit from this loan if you buy your first propriety. But you also have benefits such as a much lower deposit requirement. You should learn more about government-supported mortgages.
The minimum deposit required by this type of mortgage is 5%. But the range of loans you can take with this coverage is limited. So, it’s best to up the deposit to 10% to access all the mortgages.
As you may not know, different types of mortgages fall into this category. For example, the help to buy and the right to buy mortgages can be considered custom types of first time buyer loans.
Also read: 5 Tips for Choosing a Suitable Broker for Your Mortgage
Are First Time Buyer Mortgages the Best Option for You?
The next question you need to consider is if first time buyer mortgages are the best option for you. With so many different types of loans available on the market, you may not be satisfied with the options you get from this type of loan.
So, it is in your best interest to also check other options. If possible, you should check all the mortgages for which you are eligible before making any decision. But first, you should learn as much as possible about the mortgage industry.
Remember that information and knowledge are the rulers in this field. The more you know, the wider your range of options, and the easier it will be for you to invest in the future and maximize your benefits.
Why Should You Consider Right to Buy Mortgages?
If you are eligible for the right to buy mortgages, you should strongly consider them. There are so many advantages that these type of loan offers that it’s impossible to ignore. So, any mortgage broker will strongly recommend you use this opportunity. The first advantage you should consider is the 0 deposit you will have to pay. Why? Well, the discount you get will count as the deposit. So, you won’t need to come up with any deposit. But of course, you will still need to pay the transaction fees.
Of course, the discount is the biggest advantage, and you will get the propriety you live in for a much lower price than normal. Finding offers as reliable and beneficial as this is not easy in life. And you should never lose such an opportunity if it is available.
Always Work Together with a Reliable Broker
Regardless of the type of mortgage you choose, looking for a reliable broker to work with is mandatory. Why? Because the advantages you will get come with many financial benefits, and you will save money by hiring a good broker. The benefits are big enough for you to not ignore this opportunity.
But how can you find a reliable mortgage broker? The easiest way is to go on google and look for all the brokers in the UK, which will allow you to easily compare your options. Of course, the more options you check, the higher your chances of finding the best loan based on your circumstances.
After you make the comparisons, all you have to do is choose the best one. But you should not forget to check a brokerage website’s reputation and authority in the industry and try to deal only with the best ones. Remember that you are not limited to a single broker. You can check the offers provided by the several top ones.
