First Time Buyer - Cheap Mortgage Deals

First time buyers are essential to a healthy housing market. If there are not enough new buyers opting to join the property ladder the consequences are felt all the way to the top of a chain of buyers. There is always a need for buyers buying the cheapest property in order for others to progress further up the property ladder.

The threshold for paying stamp duty has changed allowing buyers buying a property below £120,000 to escape payment. This is seen as a great help for first time buyers who will avoid the 1% charge, although as most areas in the UK have an average property price of around £157,000, it may not have helped as many people as intended. Click here for information on Stamp Duty Payments.

First time buyers are becoming increasingly inventive in finding ways to secure their first property. One way is to ask their parents to act as guarantors of the loan, a step that gives the lender confidence that the payments are more likely to be met.

Of course, not all first time buyers are still at home and living with parents. Some buyers are joining forces and buying a first property together, although this may be difficut when one buyer wants to move on and the other is happy to stay.

The first time buyer market includes products specifically aimed at helping them. They include 110% mortgages and cash backs. Some mortgages can also have extended terms and the interest in 40 year mortgage term products has recently increased and many lenders are including them in their product ranges.