Mortgage options for those looking to take their first step on the property ladder.
These are mortgage deals especially packaged to attract First Time Buyers. Incentives vary but typically involve cashback, an introductory discounted rate or a lower than normal fixed rate. There could also be reductions on the arrangement or valuation fees.
Cashback could be used to repay stamp duty, or perhaps cover the cost of furnishing your new home. Similarly, a large discount on the variable rate for the first year could cover your new expenses, such as buying furnishings or decorating. A lower than normal fixed rate will save you money and ensure that your monthly repayments are kept constant and predictable at the start of the mortgage.
Advantages
- A lower than normal rate of interest.
- Cashback when you most need it.
- Potentially lower arrangement or valuation fees. These additional costs are completely removed with some mortgage offers.
Disadvantages
- You may end up paying higher rates for the rest of the mortgage term, after the initial discounts, making the overall cost higher in the long term.
NB This information is provided to give you an overview of the different types of mortgages available. It is not comprehensive and you should not base your mortgage decision on the information found here. We recommend you seek Compare mortgages via money.co.uk
