Mortgages - Hope for first time buyers

 
 
  The credit crunch has brought instability to UK shores. It has also done nothing but almost instil fear in the minds of consumers.

This fear has also transcended to mortgage lenders/brokers that have been forced to withdraw mortgage deals that attract the most attention, as well as a few even increasing their rates of interest.

But what are the implications for those of you with aspirations of becoming first time buyers? believe it or not you do still have viable options available to you. At the moment Abbey national who also provide mortgages, are currently offering 100% mortgages. If you are not familiar with exactly how these mortgages operate, they are mortgages that do not require an initial deposit up front.

This method of finally getting your foot on the property ladder may prove useful to a number of you. However it may not be an option for everyone, but it does carry its benefits. As you know there is no deposit needed, you also have the choice of a selection of fixed tracker and variable tracker rates, accessible to you depending on your preference. Unlike most of the mortgage lender/brokers who charge if you borrow a higher amount, there is no higher lending charge with this deal from Abbey.

In addition to all of these generous benefits you could also potentially borrow up to as much as £500,000. This is on the condition that it is deemed by the Abbey that you can afford it. Take note there are a number of areas you will need to consider when applying for a 100% mortgage. First off because of the way in which this type of mortgage operates and what is being offered, it is very likely that the rate of interest you pay may be higher than the average.

Paying a higher rate of interest on this type of loan is necessary, as this is a loan that carries a higher degree of risk for the lender.

   
 
     
 
 
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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPATMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT

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