The property market is currently going through a particularly tough period but that doesn’t mean first-time buyers should be put off finding their first property. In fact, recent studies have shown those who are paying mortgages are better off than those paying monthly rent instalments. This is because rent is constantly increasing and mortgages are decreasing.

Buying a home is the biggest financial commitment you will make in your lifetime, so it’s worth taking the time to research the ins and outs of the whole home-buying process – mortgages, interest rates, surveys, council tax and stamp duty are small fraction of what you will need to find out about and research.

There are so many different types of mortgage on offer that it can be quite intimidating finding yourself the right one. Make sure you do lots of research and get help and advice from experts.

What type of mortgage?

Repayment: this is the most popular type of mortgage as it’s so straightforward. You pay off small sums of the money you’ve borrowed and its interest over monthly instalments until you have fully paid off your loan. Once you’ve reached the end of your payments, the home is yours.

Interest-only: This mortgage can be a risky option if you aren’t saving alongside your monthly payments. Your monthly payments only consist of the interest of your capital so you aren’t actually paying off any of the main part of your loan. This option is obviously cheaper but risky if you can’t afford to make your payments for whatever reason. It’s advisable to set up a separate savings account and put monthly amounts in to cover the cost of your loan should anything happen to you.

Endowment: This is where you pay off your monthly interest to your lenders and put a separate amount into endowment. Endowment is an investment that’s linked to the stock market so prices can fluctuate. This could put you at risk so isn’t a popular option with the economy as it is.

One advantage of a first-time buyer in a tough property market is that you can haggle with prices. Never offer your full amount (unless it’s a very competitive property), offer £10,000 less so you can always offer more if your bid is rejected. Add £1000 onto the price each time you put a new offer, take slow and steady steps as the last thing you want to do is overpay on a property (houses are expensive enough as it is!).

Your deposit and mortgage are just two of the financial aspects of property buying you need to consider – there are many other additional costs that you need to take into account as well. Lenders will ask you to get the house surveyed to check its value. The cheapest surveys are usually around £150 but you will get the basics for this, for your peace of mind you might want to spend more on your survey – if there are any problems with the house it’s better to know beforehand than forking out on them in future.

Clair O\’Hara is writing on behalf of Shepherd Gilmour, estate agents who specialise in Northern Quarter property.

Clair O\’Hara is writing on behalf of Shepherd Gilmour (http://www.shepherdgilmour.com), estate agents who specialise in Northern Quarter property.

Author Bio: Clair O\’Hara is writing on behalf of Shepherd Gilmour, estate agents who specialise in Northern Quarter property.

Category: Real Estate
Keywords: estate agents, estate agents Manchester, Northern Quarter property, Manchester estate agents