Best Mortgage for first time buyer?

susi

Can anyone tell me the best mortgage to have for a first time buyer, who would probably need to borrow around 40,000 on a house he is able to purchase for 56,000? He would hopefully like to repay it off quickly without too much of a penalty for early repayment. I have tried to reserch it a little bit for him but we are just confused by all the jargon. Any info would be appriciated
Forgot to add he is self employed

dunstonh

There is no one best mortgage that fits all first time buyers.

You have issues of different distribution channels (deals that may only be available direct, via a broker or through a branch) - so how would he buy?

You have issues on his self employment (time and income track record) and how the lender will view that. So underwriting position may eliminate certain lenders.

There is also the type of market. Some with tie ins still allow overpayment to 10% without charge. So, it may be that a deal with tie in but with reasonable overpayment terms is acceptable.

Have you spoken to a local mortgage broker?

susi

Thanks for that, I dont think he has spoken to anyone as yet, its still just a thought with him, will pass on your message, thank you

Svenena

Have you had a look at the free 40 page mortgage guide available on this site? It's linked to on this page, just under the title of the thread. Should help you understand all the terminology and where to start your research.