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Latest News » Increased Mortgage Terms
As I’m sure you’re aware house prices are still rising and show no sign of slowing no matter what experts say or people predict. This spells hard times for those looking to get on the first rung on the property ladder. A janitors closet no bigger than 6 feet squared was valued at £200,000 in the borough of Kensington & Chelsea in London. To say house prices are becoming out of reach would be an understatement.
First time buyers face 3 hurdles before they can purchase a property. 1. They need to be able save enough to afford a deposit, 2. Finding the money to borrow, and 3. Having enough money to afford the monthly repayments.
Although house prices have been on the up, first time buyers haven’t been ignored. Lenders have had to become creative with their products. The 100% Mortgage is a relatively new product aimed at assisting first time buyers onto the property ladder. Lenders are currently looking at increasing lending terms from 25 years to 50 years. This would initially reduce the monthly repayment of the mortgage, but in the long term would see interest costs spiral.
With the competitiveness of the mortgage market at the moment, a first time buyers needs to shop around to find the best deal in order to save as much money as possible.
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