First Time Buyer Mortgages

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First Time Buyer Mortgages refers to home loans that are taken by the borrowers in order to finance their first home. The Mortgages of the type First Time Buyer are usually taken by newly married couples and also by people who have just started working.

The Mortgages of the First Time Buyer has increased all over the world in the last few years because people have realized that it is better to own the house than to stay as a tenant. Nowadays many banks and building societies are offering First Time Buyer Mortgages and they are also offering a wide range of selections such as repayment mortgage, flexible mortgage, fixed rate mortgage, and interest mortgage.

When a borrower is going for a First Time Buyer Mortgages, he has to first search for a house that is within his budget. Then he has to apply for the home loan and once it has been approved, he can buy his dream house. In the First Time Buyer Mortgages, the lender usually advances 3.25 times the amount of salary of the single earning member. In case the couple is earning, the lender advances 2.25 times of the salary of the couple. Some lenders even advance in First Time Buyer Mortgages around 5 times the amount of salary.

The providers of mortgages prefer the borrowers who are taking the Mortgages of the First Time Buyer for they know that if they treat the customers well then they would come to them again and again. The advantages of the First Time Buyer Mortgages are that it allows people to own houses at the start of their careers which they would otherwise not be able to afford. Also, by buying homes, people are able to own a property which is a lifelong asset. Many consider this a better option than shelling out thousands of rupees every month on rent.

The disadvantages of First Time Buyer Mortgages are that such a high rate of interest is charged from the borrowers that it puts added pressure on them. Also, most people going for First Time Buyer Mortgages have very little idea related to the rules for buying a house and also the rules pertaining to taking a mortgage. As a result, many times the borrowers do not get the best deals.

First Time Buyer Mortgages have become very popular in the last few years because it helps the borrowers own their homes. So various banks and building societies must continue to encourage its use by launching many new attractive schemes.

Last Updated on 5/26/2011