FIRST TIME HOME BUYER MORTGAGE RATES
If you’re a first time buyer, there are a range of mortgages designed for you. Some offer very reasonable first time buyer mortgage rates, in order to make your first few years in your home as financially easy as possible. Others will provide a set of schemes for you to look into which could make significant savings on your home ownership. Some aspects of first time home buyer mortgage rates that you need to consider are: The SVR (standard variable rate), Fixed rate vs. tracker mortgage, Interest only vs. repayment, Charges and fees.
HOW DO I FIND THE BEST FIRST TIME BUYER MORTGAGE RATES?
It’s a buyer’s market, and whatever your circumstances, you’ll be able to find banks and lenders who will be able to offer you competitive first time buyer rates.
Your job is to cast your net far and wide and weigh up each individual deal. Banks, building societies and mortgage brokers will be able to offer you deals, but these will differ in time frames, interest rates and product fees.
However lowest price doesn’t always equal the best deal…
You’ll soon learn that getting the cheapest rate isn’t necessarily the best deal for you. What may be a cheaper repayment per month could mean a higher arrangement fee which would be required upfront. Each deal will have its pros and cons, so you need to figure out what works best for you in the short term as well as the long term.
“HiP could solve the UK housing crisis”Peter Bill,
"It’s a game changer, and a very exciting one."Sophie Eastwood,
HiP for first time buyers
So where does HiP come into all this?
HiP provides an unrivalled service for first time buyers. While we can work alongside a mortgage provider, we can also help make the process a lot easier for you. First time buyers face a lot of obstacles in the process of getting onto the property ladder.
At HiP we can help you by:
Offering a comprehensive and affordable financial package which can include third party investors to reduce the amount of cash you have to initially provide. Providing an interest-only loan which can be repaid monthly, or by using the equity mounting up in your property. And withdraw money from your equity without moving, borrowing or losing ownership.
HiP is unique
This is an exclusive offer – and one which is only provided by HiP. Nobody else treats home buying and ownership in this way. With HiP, the money tied to a property is fluid, so you can use it like a bank account.
With HiP sky is the limit
Having third party investors as an option can help you own a property that was once out of your range.
And having the financial support of your equity means that you can use it to cover home loan repayments – without any charges, fees or penalties – a life saving option during tighter periods
HOW YOU BENEFIT WITH HIP
HiP is the NEW Way
to finance property
Reinvent the way you look at property investment
HiP is hugely beneficial to property owners, changing the way we can use bricks and mortar into something with far more fluidity than ever before. It is a debt and equity exchange, with investors all over the world interested in putting their money into property.
Turn Your Property Into a Bank Account
For you, this means a democratised property market; withdraw money from equity without moving, borrowing or losing ownership, use your equity to cover your monthly mortgage repayments, or trade your equity against your mortgage.
Flexibly in the high-yield property markets without limits
We allow you to do all this, and much more, without the penalties, costs and charges that a traditional lender would impose. Whatever your property investment or finance needs may be, HiP is on hand to help you take your next step.
HiP UK will be regulated by the FCA*
And have an agreed licence for trading in the UK and Europe. *As we go live these permissions are being reviewed.
HiP UK is based in London.
HiP's 20+ staff operate from Camden, London. With registered address in Bristol.
HiP is award winning
We have won an awards and been shortlisted for more. We came second in the worldwide PropTech Innovation Awards and as Bronze in the Digital Impact award 2017 for “Best use of digital by sector”.
Register your interest
Just fill out the form on this page now, and you’ll be the first to find out about HiP, which we are busy creating. We can’t wait for you to join the property revolution.
Frequently Asked Questions
ARE THERE ANY PROGRAMS TO HELP FIRST TIME HOME BUYERS?
There are several government programs which have been introduced to ease the way for first time buyers to get on the property ladder. These include:
Help to Buy Equity Loan – where the government provides you with 20% of the property value to go alongside your 5%.
Note that this in an interest-free loan for five years, and in year six, a loan fee of 1.75% will kick in, and will increase at the retail prices index plus 1% every year thereafter.
The Help to Buy Equity Loan is only available on new-build properties in England worth up to £600,000. The scheme will remain open until at least 2021, but there is no Help to Buy scheme available in Northern Ireland.
WHAT IS THE BEST MORTGAGE FOR A FIRST TIME BUYER?
The best mortgage for a first time buyer will generally depend on their circumstances, but will inevitably rely on the low bank rates in the UK at the moment – making mortgages relatively cheap. For those struggling with deposits, there are a number of mortgages at 95% and even 100% to help get you on the ladder. HiP can help first time buyers own property without the usual higher rates and hidden catches.
WHAT’S A REALISTIC DOWN PAYMENT PERCENTAGE FOR A FIRST-TIME HOME BUYER?
Most mortgages require a deposit which is equal to 5% – 20% of the property’s value. The higher the deposit, the better the range of mortgage deals you will have access to.
WHAT IS THE BEST ADVICE YOU CAN GIVE TO A FIRST TIME HOME BUYER?
It’s important to bear a few things in mind when you’re looking to buy property as first time buyer. These include:
Put aside as much money as possible – You’ll need money, not just for your deposit, arrangement fees and solicitor costs, but you’ll also require a buffer for repainting and furnishing your home, as well as any other jobs that need doing in order to keep the house well maintained. If possible, it’s a good idea to try and have some money put aside for an emergency fund, for when the boiler breaks, or a roof tile needs replacing etc.
WHAT ARE THE PROBLEMS FACED BY FIRST TIME HOME BUYERS?
First time home buyers can find the whole process of buying a home incredibly difficult. Some of the main problems include:
Being approved for mortgage – you need to have a good credit score and be on a certain income in order to be approved for a decent mortgage.
Saving up for a deposit – saving up to 20% of a property’s value – while still paying rent and the normal overheads, may be very difficult for many people
HOW DO YOU GET A FIRST TIME HOME BUYERS LOAN?
The best place to go for information on the best home buyers loan is an independent mortgage broker. These individuals are not tied to any organisations so will offer you impartial advice that suits your situation.
WHAT ARE PERKS FOR FIRST TIME HOME BUYERS?
From a buying point of view, first time buyers won’t be in a chain or have a property to sell, so therefore an attractive prospect for anyone selling their property. This means there are no ties, and the process will be a lot speedier.
ARE THERE ZERO DOWN PAYMENT OPTIONS FOR FIRST TIME HOME BUYERS?
Yes 100% mortgages do exist, but they’re not common. 100% mortgages allow you to borrow the entire amount without putting down a deposit, or down payment. This is right for someone who has no savings, however they are not widely used as, in the eyes of the lender, there is a high level of risk involved.
WHAT IS A FIRST TIME BUYER HELP TO BUY MORTGAGE?
The Help to Buy scheme is a government initiative which was launched in 2013 and runs to 2020. It was put in place to help anyone struggling to save for a deposit on their first home, or for people having problems moving house due to insubstantial equity.
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Getting on the property ladder is a unique experience with highs, lows and a lot of waiting around. If you’re a first time buyer, get prepared with these tips.