First-time buyers mortgages in West Auckland
Introduction:
One of the best investments people can make is through owning property and the most common way to achieve this is to buy a house that they will live in. Since few people have the entire purchase price available as cash, they get a loan called a mortgage secured on that house. However, in today’s property market with rising house prices, it is difficult for young couples to come up with even the 10 or 20 per cent deposit that they banks require. So as a result, lenders will often have special home, loan promotions for first-time buyer mortgages in West Auckland to help them get a foot on the ladder.
First-time buyer mortgages in West Auckland
If you take out a mortgage with a lender, you are worth a huge amount of business to that loan provider. The borrower generally looks at the monthly repayments and compares that to the rent they might be paying. They also look at the potential for capital increase in their home. The bank though looks at the amount of money you will be paying them over the life of the mortgage. It is very common for the total repayments of a mortgage to be double the initial loan. So it is clearly in the bank’s interest to attract new borrowers.
Further, if you take a mortgage with a lender for your first home, it is highly likely that you will go to the same mortgage company when you want to buy a bigger house. And that means even more money to the bank over the next 25 years or so.
Therefore, banks often have incentives for first-time buyers.
What sort of incentives for first-time buyer mortgages?
The incentives and promotions will vary over time and on the area that you live in. A common one is for the bank to provide assistance with your legal fees. If they give you a thousand pounds towards your costs, that is a big help especially if you are young and do not have a lot of spare cash. But to the bank, this is a tiny amount compared to the total you will be paying them.
Sometimes they might offer a discounted rate of interest on your mortgage. A quarter or half of a percent may not seem a lot but this can add up to a considerable saving in repayments.
There may be a lower rate for a limited period, perhaps the first year of the loan.
Get a broker to help with your first-time buyer mortgage
Many new borrowers can feel intimidated by talking to a bank. However a mortgage broker in West Auckland will have plenty of experience and contacts with the local lenders. Ask your broker if they can negotiate any special offers for you as a first time buyer. It is in their interest to do so because if they give you a good service for this home loan, you are likely to recommend them to other people and also to return to them when you want another mortgage.
Also, since a mortgage broker arranges a number of mortgages with the various banks, they have a greater influence with any particular lender and can use this to negotiate those incentives that you want.
 
So if you want a first time mortgage in West Auckland, call us today and see how we can help.