Many lenders now have specialist First Time Buyer products, sometimes with lower fees, and perhaps are more flexible in their underwriting. It is essential that First Time Buyers receive an extra ‘helping hand’ and advice on the various costs and time scales involved in a first move, as well as the most appropriate products available. An independent ‘Whole of market’ status is more important than ever, to offer the best combination of mortgage and protection products, tailored to the individual. This can then become a ‘building block’ to future moves as well as changes in circumstances.
This type of mortgage allows a close relative to join in with the mortgage application for First Time Buyer(s), and use their income to boost the borrowing availabe. Some lenders require the Guarantor to be able to afford the whole new loan, as well as any current commitments, whilst others will treat them as an additional applicant. This can be a valuable asset in getting on the property ladder, but would be reviewed regularly as this is deemed to be a temporary situation by most lenders.