Mortgage seekers chooseright

So all the hard work and years of saving have paid off and you have finally decided to take the plunge and buy your own property. You may have even already taken advantage of the depleted housing market and seen the ideal place for your budget. Yet, with all the recent doom and gloom surrounding banks lending to buyers, trying to convince them to fund the next stage in your life might seem like an impossible feat.

Whilst it’s true that the market is still recovering and high street lenders are still erring on the side of caution, the good news is the situation certainly isn’t a stalemate. There are certainly options out there available to first time buyers; it is just knowing how to approach them that can be the difficulty. The crucial thing is to make sure you are fully aware of both your own needs, and the possibilities on offer to you, to ensure you find the most suitable agreement for you.

So what do you need to be aware of, and how can you realistically make the right assessment about the money you are investing? If your mortgage is approved, then ultimately your choice will come down to two things; whether you want the security of a monthly fixed rate or the chance to capitalize on the possibility that interest rates may fall.

If you are looking for peace of mind then the best possibility for you will be to look for deals on a fixed rate mortgage. This will allow you to make set monthly repayments of a specific amount dependant on your income. This will remain the same during the fixed rate period, so it acts like an insurance policy in that it protects you from any interest fluctuations that may occur throughout this time.

Whilst this certainly guarantees that you avoid interest rate price hikes, the downside is that you won’t get to reap the benefits if the opposite occurs. In this case, a base tracker rate mortgage will allow your mortgage to follow suit with the Bank of England base rate, so that if interest rates drop, your repayments will feel the positive effects. The gamble is that this does not promise any future security against rises.

One final alternative that may well appeal to those with a less routine financial situation is applying for a flexible mortgage plan. If approved, this enables you to have much more control over your repayments by allowing you to make large deposits when you are in a financial position to, and to underpay or even take breaks at times when you need. As such, this option is very appealing to those who work freelance or are self employed.

At the end of the day, finding the right deal on your mortgage will come down to your own unique economic position, and your preference for financial security. The important thing to remember is that there are mortgage options available out there for you, so don’t be discouraged by recent scare stories of banks unwilling to pay out. Have a look at Santander, for examples, as they offer a range of special packages on fixed, tracker and even flexible solutions on their mortgages.