For first time buyers the mortgage market is a maze of confusing terms and jargon. But after you consider that the rent that you pay is really not benefiting you at all, apart from putting a roof over your head you may as well flush it down the loo.

Having a property of your own can only serve to benefit you in the future, you have an investment for the future, one that will increase in value, one that can be passed on to family making their lives easier.

The amount you can borrow will be based on an assessment of your individual circumstances and the amount of adverse credit you have. Most lenders will look at your levels of income, amount of outstanding debt and your payment history when calculating the amount they are willing to lend.

It is always beneficial to have the largest down payment you can manage to save toward the properties value. A down payment does not cost you interest. Most lenders prefer to lend you a percentage of the value of a property rather than 100%, that way should you not keep up repayments they can take possession of the property and sell it for a profit.

A lot of mortgage lenders only lend 90% of the cost of a home. Not everyone can afford or would even want to wait until they have managed to save up the remaining ten percent. For first time buyers, a 100% mortgage can be their only means of getting a foot on the property ladder.

However you should also realise that these mortgages do have disadvantages. Because you have borrowed 100% of your mortgage you are more at risk of going into negative equity if house prices were to fall. Some lenders like to ensure that they cover themselves for the risk by offering 100% loans but by charging a higher rate of interest.

Poor credit rating may mean that you have a bad credit rating, or you could be any of the following: self employed without proof of 3 years accounts, you could have CCJ’s (county court judgements) against you, you might have credit card arrears, loan defaults, bankruptcy, IVA history, or previous mortgage or rent arrears. You could be employed on a temporary basis and you don’t have a credit rating.

If you do not have a credit record or you cannot provide any proof of income, then you are regarded by lenders as having no status. If you do have a poor credit rating there are still lenders who will offer you a mortgage but you will usually have to pay a larger proportion of the properties value as a deposit. Nowadays many lenders will look at your circumstances and ability to pay rather than your past credit problems.

DFC Money Solutions mortgage advisors specialise in helping people find a mortgage in the adverse credit market.

Call us now on 0800 007 5307 to find a mortgage that is suitable for your needs.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBT SECURED ON IT.

LOAN SUBJECT TO STATUS INSURANCE CONTRACTS MAYBE REQUIRED. 

Debt consolidation is the process in which debt is restructured into one low affordable amount which you agree to pay. At DebtFC we offer a range of debt consolidation options Scottish protected trust deed, individual voluntary arrangement (I.V.A), remortgage, debt management plan, homeowner loan, sell and rent back or perhaps bankruptcy (sequestration in Scotland) our experienced debt consolidation team, will discuss your options and provide you with free debt help and debt advice on how to deal with your debt problems. We are based in Livingston, West Lothian, Scotland but help people throughout the UK.

If you recognise any of the following symptoms... then you need our debt help!

Credit card debts, missed loan repayments, creditors phoning, debt collectors, bailiffs, County Court judgements, bankruptcy, insolvency, mortgage arrears, repossession, robbing Peter to pay Paul, not opening the mail, afraid to open the door.
Our debt consolidation team will show you the options that you have available to get out of debt with one reduced, affordable monthly payment. For a NO OBLIGATION, FREE CONSULTATION, call or send the contact form for some friendly, free advice.