From a recent review of the UK mortgage market, there are currently two hundred 90% mortgages for first time buyers currently available. This may sound a lot, but a closer inspection reveals that not all of these mortgages are easy to come by or available to all first time buyers.

90% mortgagesFor example; 76 of these mortgages are only available in particular parts of the country or within particular post codes, 10 are only available through brokers in a particular mortgage club and 17 are restricted to shared-ownership schemes.

Number of 90% mortgages

Further analysis reveals that of these 200 first time buyer mortgages, 118 are only available directly from the lenders’ own branches or call centres. The question is, why are the lenders so keen to push first time buyers directly to their own “advisers”? If, indeed, they can really be classed as “advisers” when all they are doing, in fact, is selling their own company’s products. The more cynical may argue that first time buyers may lack the experience of existing home owners and may more readily accept the limited range of mortgages and related insurances offered by one bank, maybe with a well-known name from their TV advertising. Whilst this may be great for the bank’s profits, it may not necessarily be the best deal for first time buyers.

Another factor regarding availability is the lenders’ lending criteria. What are the chances of being approved for a particular mortgage and what happens if a first-time buyer is declined? Maybe more than once? A question often asked is “will I qualify for this mortgage?” For first time buyers in particular, the home-buying process can be a particularly anxious time and one or more refusals by a lender could easily lead to a decision to give up the idea of buying a house altogether.

First time buyers and 90% mortgages

So how can a first time buyer get genuinely independent mortgage advice from the whole market, including those direct-only and specialist local deals?

And how can ensure that they give themselves the best chance of being approved for the mortgage of their choice?

A local, independent mortgage broker, whose research and advice includes all possible mortgages, may be the answer.  Firstly they will be able to assess every suitable mortgage for a potential first time buyer, saving hours of time and avoiding potential pitfalls. Secondly they will be able to match the circumstances of each client to every lenders’ particular criteria, ensuring the best chances of the mortgage being approved. They will also be able to either submit the application themselves on behalf of the applicant or provide assistance and support if the application can only be made directly to the lender.

The final question may be “how do I find a good local mortgage broker?” or “how do I know my mortgage adviser will include all mortgages on their research”.

A recommendation is often a good starting point – maybe you have friends who have received good mortgage advice recently or perhaps your solicitor has a trusted adviser he can put you in contact with. If not an internet search for a local firm may help. There are a few questions that can be asked to make sure that you are getting the service that you want from your mortgage adviser such as:

“Do you include all mortgages, including those only available directly from the lender in your research?”

“Do you offer a free mortgage consultation?”

“How much is your fee and when is payable?”

(Bear in mind that if a broker doesn’t charge any fee at all, they are unlikely to offer advice on mortgages only available directly, as they won’t get paid for these).

“Are you based locally, and can I come and see you or do you offer home-visits”

In summary, 90% mortgages for first time buyers can be hard to come by, but with a little assistance from a truly independent mortgage adviser you will at least know what is possible.

At Park Gate we offer truly independent mortgage advice, sourcing mortgages from the whole of the market, including those only available directly from the lenders. We offer appointments at our offices in Whiteley or home-based visits for Hampshire and the surrounding area. We also have the facility to give mortgage advice by telephone or email. For a free, no obligation consultation to find competitive 90% mortgages call us on 01489 580020 or contact us

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