14/06/2009 by bill.

In a sign that it may become easier for first time buyers to find an affordable mortgage, the Britannia Building Society now has a mortgage offering 5.09% interest fixed for two years requiring a deposit of just 10%.

Click here for more information about selecting the right mortage.

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15/01/2009 by bill.

Falling house prices are a worry for many home owners especially those facing negative equity issues but for the first time buyers now might be the time to move into the market. No one can reliably forecast what will happen to house prices during the next year but many experts suggest that the rate of fall is slowing and prices may stabilise and then rise over the next 2 or 3 years. Mortgage rates are now lower as a result of the cuts in the Bank of England Base Rate although the first time buyer will need a good deposit to take advantage of the best rates.

The first advice for the first time buyer is to thoroughly research the housing market in the area you are buying. Look at the Land Registry website which will give you house price trends for the area, compare prices for the type of property and location you are looking at, look at UpMyStreet for recent actual sold property prices.

Before making an offer try to establish how long the property has been on the market and why the property is on the market, try to judge how anxious the seller is to get a speedy sale.

You will be in stronger position if you already have a mortgage offer or an assurance that you will be lent the money.

Always make an offer lower than the asking price, even if your offer is rejected you will have the opportunity to make a better one. In the current market offering 10% or even 15%less is not unreasonable and in some places you could offer even less. Recent reports suggest that in some cities where supply of apartments outstrips demand selling prices at auction may be 30 - 40% down on the peak of a year or so ago.

If your offer is rejected try to negotiate, ask for the seller’s best offer and offer something between the two amounts. Try to get fixtures and fittings included in the price, remember that even expensive carpets and curtains will probably not fit the sellers new property.

If you are looking at buying a new property remember that many builders are facing a sales crisis and may well accept a much lower price than that the advertised price, particularly if a development is near complete with just a small number of units left for sale. If you have a property to sell, look for part exchange or assisted sales deals. Many developers will make a contribution to your mortgage payments for the first year and pay the stamp duty - 3% on properties over £250,000.

Also look for extras, often the show home will have kitchen and bathrooms equiped to a higher standard with floor tiles offered at an additional cost, try getting the upgrade included in the deal.

The UK government has acted try to stimulate the housing market and to help the first time buyer. There are several schemes available for first time buyers with a household income of less than £60,000 a year. If you would like to buy a newly built home you can share the cost of buying your home by taking part in the New Build HomeBuy scheme. Under this scheme you buy at least 25 per cent of the property and the housing provider charges you up to a maximum of three per cent per year on the value of the property that it owns.

You must be able to buy at least 25 per cent of the property. You can buy further shares of the property if you are able to afford it. The purchase of further shares is always at market value.

HomeBuy Direct will provide help to up to 10,000 first-time buyers to purchase specified newly built homes. It’s expected that the first HomeBuy Direct homes will become available by early 2009.

Or you may be able to take part in the First Time Buyers initiative, which is run by the Home and Communities Agency (HCA), to help you by a newly built property.

Under this scheme you will only buy a minimum of 50 per cent of the value of the property and the HCA will charge you a fee for the remaining value of the property. This fee is payable after three years. If you sell the house you will have to pay the HCA the same share at the current market value.

The scheme is only available on certain housing developments so check with the HomeBuy agent for your area.

For these and other schemes go to the DirectGov website.

For more useful advice and information about buying a home see moneyjungle.net

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