First Choice Finance - Mortgage Broker First Choice Finance Compare Home Owner Loans
First Choice Finance - Mortgage BrokerCompare Home Owner Loans


Getting a mortgage may be tougher

Getting a mortgage may be tougher

 



Video transcript

The number of mortgages awarded in the third quarter may have reached the highest level since 2007, but first time buyers may struggle to get onto the property ladder now and in the future.

Recent Council of Mortgage Lenders (CML) figures show that 188,000 mortgages worth £32.4 billion were arranged between July and September, but this is still some way off the 2007 peak of 223,900 home loan deals.

The devil is in the detail of the CML numbers, which show that the number of mortgages given to first time buyers fell for the second month in a row during September, possibly an influence of the Mortgage Market Review taking hold of the sector.

Tighter regulations has potentially led to young buyers being gradually squeezed out of the market again, with Moneyfacts revealing that people who put down smaller deposits are typically having to stump up an extra £2,800 `penalty` for doing so, due to worse rates.

You can explore options to try and get a good deal when you get a mortgage by arranging yours through First Choice Finance. We scour our products for the most suitable deal for you and any mortgages quotes are presented on a no obligation.

Find out more by calling us for free from a landline on 0800 298 3000 or from a mobile on 0333 003 1505. Alternatively, you can visit the website: firstchoicefinance.co.uk.


Despite having to pay thousands of pounds more than people with larger deposits, the CML reports that there were still close to 27,000 loans made to first time buyers during the third quarter of the year. The good news is that even though the August to September figure showed a fall in numbers, annually, they were up by a considerable amount.

However, this may not be a trend that continues into the years to come according to a study by the Higher Education Commission, which believes that now that university tuition fees can cost up to £9,000 a year, some middle class professionals may not be able to afford to buy due to their student debt.

The research shows that by the end of university, the average student will carry with them £44,000 of debt, which includes loans for living expenses. This is close to double the £25,000 that was the average under the old system.

With the Bank of England base rate due to increase at some point, the Higher Education Commission believes that many will be unable to repay their loans within 30 years.

The study concludes that the Commission is `deeply concerned the government may have created a loan payment system where, for example, a teacher is unable to secure a mortgage at the age of 35 because of the high level of monthly loan repayment`.
 

Homeowner Secured Loans
Rates From 7.1% APRC Representative Example £30,000 over 72 months @ £679.90 repayments. Total payable of £49,949. 20.1% APRC including £2,975 intermediary fee and a £995 lender fee. Loans secured on property. First Choice are tied to certain loan providers.

Mortgages & Remortgages
4.5% APRC
Representative Example: Borrow £80,000 over 25 years At 4.6% Variable, £461.95 for 300 months.
Total Payable £138,585. Total Cost Of Credit £58,585 (incl £1360 fee).


Unsecured Personal Loans
REPRESENTATIVE 49.9% APR (VARIABLE)
First Choice are tied to certain unsecured lenders.


THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Security is required on immovable property.



Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home

First Choice Finance is a trading style of First Choice Funding Limited of The Old Courtyard, 103 Buxton Road, High Lane, Stockport, Cheshire. SK6 8DX. Copyright protected 2014.


  Best Deals & Latest News

Debt Consolidation Remortgages & Loans

Release Equity Via A Remortgage or Loan

Mortgage & Remortgage LTV Calculator

Reasons Why Mortgages May Be Rejected

Remortgage With Bad Credit

Online Home Loans
Secured Loans and Remortgage Advice
Loan or Mortgage Application

Loan Plans

Mortgage and remortgages - Best Buys

Mortgage Programs

Looking For A Low Rate Mortgage? Enquire online and receive a no obligation mortgage quote from a qualified mortgage adviser whatever you are looking for a purchase mortgage buy to let mortgage or a remortgage of current home.



How can I increase my disposable income?