First-time buyers hit by higher lending charges

08-Mar-2006

Aspiring homeowners may be penalised by higher lending charges that could cost them up to £4,000 over two years, according to recent research.

Many homeloans that are currently on the marker offer more than 90 per cent of a property's value, reports the website This Is Money.

For advice on first time buyer mortgages or to find out how much you can borrow and how much it will cost you, from the UK’s leading High Street Brokers, Bradford and Bingley, click here

However, first-time buyers looking to get a foot on the first rung of the property ladder are attracted to deals that in fact offer less than it first appears.

A survey by price comparison website Moneysupermarket reveals that first-time buyers who take on a large higher lending charge could end up thousands of pounds out of pocket after two years.

To ask about the legal costs of house-buying or to ask a legal question specific to your own situation, from the UK’s leading High Street Brokers, Bradford and Bingley click here

However, Louise Cuming, head of mortgages at Moneysupermarket, told the website: "There are enough products in the market for borrowers to choose from, where they can avoid paying the higher lending charge."

She went on to say that first-time buyers are being stretched financially in order to afford the rising cost of property and are penalised at the same time.

Lenders claim that it is necessary to impose higher lending charges as insurance against the costs of a borrower being unable to repay their mortgage.

Consult our tax advisor about your own situation or ask for a quote for managing your tax affairs, from the UK’s leading High Street Brokers, Bradford and Bingley, click here

To find out more about creative mortgages designed specifically for first time buyers, from the UK's leading High Street Brokers, Bradford and Bingley, click here

2008: May | Apr | Mar | Feb | Jan

2007: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2006: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2005: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar