Buying a home for the first time is exciting but we understand that it can be stressful too. Impartial Financial Management are an independent mortgage practice who can offer 'Complete' advice.
If you've got a deposit, great - you're well on the way to owning your own home. With your deposit in place, you can rely on Impartial Financial Management to take you step-by-step through the process of buying a home, along with helping you with the costs involved.
We've tried to make First Time Buyer Mortgages easy to understand and quick to arrange. Essentially there are three things to consider when choosing your mortgage:
Choose between a Repayment, Interest-Only or Part and Part Mortgage:
Repayment Mortgage
Your monthly payments are made up of both interest and capital, so your mortgage is gradually paid off over the mortgage term (as long as you make your mortgage payments when they are due).
Interest-Only Mortgage
You only pay interest to your lender throughout the mortgage term and your mortgage balance doesn't usually reduce. At the same time, you put money into a separate investment, such as an ISA, which should grow and pay off the mortgage at the end of its term.
You must make sure you keep premiums up to date on any investment product you take out to pay off your mortgage. Impartial Financial Management experts can provide you with more information about the options available but cannot give you advice on the most appropriate investments for you.
Part and Part Mortgage
A Part and Part Mortgage is where you combine a repayment with an interest-only mortgage. So part of your mortgage would be repayment, and the remaining part would be interest-only.
25 years is the standard term to repay most mortgages, but you may have the option to spread it over a maximum of 40 years. This could help with budgeting early on and you could then reduce the term in the future. Please be aware by spreading your payments over a longer term, you may be lending into retirement and you will be required to have a suitable plan in place to enable you to continue funding your mortgage payments.
You can choose from a fixed rate mortgage or a tracker rate mortgage.
Fixed Rate Mortgage
If you want complete peace of mind, a fixed rate could be for you. Quite simply, the interest rate you are charged stays the same for a set length of time.
Tracker Rate Mortgage
If you think interest rates will stay low or go even lower, a tracker rate could be perfect for you. Most other, less common, mortgage rates are variable, stepped and capped. Our advisers will explain all of your options and advise you on the most suitable rate. Tracker interest rates are linked to the Bank of England base rate (also known as the Bank of England repo rate). Details of this rate can be found on the Bank of England website. You will be charged an amount above or below this rate. This means the rate can go up or down.
If you need a little help on to the housing ladder, Stepping up in the housing market or looking to release equity in your current property, Impartial Financial Management are here to help you find the mortgage that's right for your home and pocket. And, we can also arrange all the insurance you need to protect your home, income and family.