First-time buyers 'should be aware of short-term mortgage fees'

02-Dec-2009

First-time buyers should be aware of the fees they may incur if they take out a short-term home loan.

This mortgage advice comes from Helen Adams, managing director of Firstrungnow.com, who also noted the benefits of such schemes.

According to Moneyfacts, lenders have increased the number of short-term mortgage deals, with 410 two-year products on the market, compared to 257 a year ago.

Ms Adams said this can be a good way of starting out when stepping onto the first rung of the property ladder, because it lowers the cost of the home loan in the first couple of years.

However, she warned that people should be aware that costs will go up at the end of the period.

"I think it is quite difficult for people to be aware of these offers or to even fully understand them," Ms Adams commented.

"That's why we think it is important that first time buyers work with mortgage advisors who can explain it to them."

The Council of Mortgage Lenders recently published figures that show mortgage lending for October was up five per cent compared to the previous month.

How to buy a house from finding your first property, first time buyer mortgages, mortgage advice, shared equity, shared ownership, joint ownership, part buy part rent and HomeBuy. All a first time buyer could need as well as first time buyer news at FirstRungNow.com.

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