Before you start looking for a property get a mortgage in principle.

As a first time buyer your main problem will probably be finding enough money for the Deposit. You could borrow all the money ie get a 100% mortgage but ideally you want to avoid this because it will probably cost you a lot more than necessary.

Be very wary about signing up to a deal which may trap you into something you'll find it hard to get out of - whether you're a first time buyer or an old hand..

Don't just grab the first mortgage you can.

To play it very safe consider using an IFA on a fee paying basis.

Some mortgage lenders make special efforts to lure first time buyers in. So keep an eye out for these special deals.

If you're buying as a couple, factor in the unthinkable future parting of the ways.

It will always help if you can show you've been paying regular rent for a similar amount to what your intended mortgage payments will be. So keep any receipts or other evidence.
For those not already on the property ladder the outlook can be daunting.

All kinds of surveys suggest that that first property is all but out of reach for first-time buyers in many parts of the UK.

However there are many positive steps that the potential first-timer can take to buy their first home.

If you have affordibility problems, the immediate solutions might be:

Try to get a 100 per cent mortgage a EUROS many lenders offer these to first time buyers.

They are normally repayment type mortgages

If you have a deposit, but can't afford large monthly payments, another possible solution might be to get an interest-only mortgage. This is a mortgage type where the monthly payments only pay off the interest, and you don't make any payment towards the capital sum.

Get a longer mortgage: Choose a mortgage term longer than 25 years a EUROS it may seem daunting but many lenders will offer mortgages with terms up to 40 years. This may help you afford the lower monthly mortgage payments that will result. The hope is that the property prices will keep rising so when you come to sell you will be able to pay off this longer tern loan. While, historically, property does rise over time, it is not guaranteed.

Some lenders will offer increased income multiples a EUROS in other words up to 4 or 5 times your income.

Some lenders even have schemes where you can borrow more than the value of the property. Find a mortgage broker who will help you locate these.


Look out for other special deals aimed at the first-time buyer. These might include lower deposits, better terms or family guarantor options.

Some lenders offer special fixed-rate mortgages for first-timers with low deposits (but remember that if the interest rate goes down you could be left paying more).
Group Mortgages and Shared Ownership
This is a growing trend. A recent survey has shown that around 57% of first-time buyers would consider buying a property with friends. Over the last few years more and more high street lenders have started to offer these which enable up to four people to pool their income and jointly purchase a property. Read more about Group Mortgages and Shared Ownership in the UK

General Solutions

Increase your knowledge Gather together as much information about mortgages and home buying as possible. OK you're already doing that by reading this. But keep on doing it. It really will help.

If you're not finding it easy to get a mortgage then your persistence and information gathering is what will make the difference.


Research property prices. Dona EUROS TMt rely on rumour and hearsay. Find the lowest and highest average prices for the kind of property that youa EUROS TMre after.

Research mortgages. Dona EUROS TMt take the first deal you come across. There are many kinds of mortgage, some aimed specifically at first time buyers. Check them out and list the pros and cons before making a decision.

Negotiate: while it's important that you don't underestimate the price of properties of the type and in the area you want - nor overestimate what you can afford - bear in mind that there may be a lot more flexibility in the prices quoted than you think.

At the time of writing asking prices are being undercut by 20% or less. That's 30,000 on a 150,000 flat. See Making an Offer .

Try the DIY type sellers who are selling their own properties. They may be more realistic than Estate Agents

Be realistic from the beginning and youa EUROS TMre more likely to find a deal that suits you.

Mortgage Help from The Government

The government has expressed its commitment to make first time buying easier. Currently there are three schemes mooted. Keep an eye on these and find out if anything is happening in your area.

Shared ownership. The government initiative would share the mortgage between buyer, government and lender. The details are still to be worked out but this could provide an affordable route to your first home.

Affordable housing. The government is buying up land and exploring ways of reducing the cost of building new housing so that it can provide affordable homes.

Tax incentives. The government has plans to increase the stamp duty threshold so that lower price properties arena EUROS TMt affected.

Key workers. There are a number of schemes that make first-time buying easier for key workers (health workers, teachers).

Read article on the New First Time Buyer 50 / 50 Scheme

Deposits

Generally speaking the bigger the deposit the better the deal and the lower the repayments.

While 85-100% loans are available, expect to pay much more for them. Some lenders charge an extra fee to arrange these mortgages

See if you can borrow the money for a deposit, or to increase the deposit you can afford, from your family.

Ask The Family

Many mortgage lenders will allow your parents to act as guarantor for your mortgage.

You might borrow the deposit from your parents.

Recently some innovative schemes have come onto the market allowing you to offset parental income or savings against the loan.

Look Further Afield / Move
If you can move around there are still bargains to be had away from the traditional property hotspots in the south and the inner cities.

Look at less salubrious areas or less popular regions.

Remember that once you get a foot on the ladder moving on becomes much easier.

Look at the section on Finding Your Property particluarly Don't overpay for an expensive address

Graduate And Professional Mortgages
These are mortgages aimed specifically at Graduates and professionals (including teachers, lawyers, doctors) offering better conditions than standard loans.

So, while it is tough out there at the bottom of the property market, ita EUROS TMs not impossible.

Explore all the options and you may find it easier to get that first mortgage that you thought. And remember, the market is always changing.

Interest rates, government schemes, regional values can all vary providing opportunities for the informed buyer.