Average house prices in the UK have now risen to around GBP160,000. This means a couple buying their first home would need a deposit of at least GBP8,000 and a combined yearly income of GBP50,000. Of course, this assumes that they can still get a mortgage with a relatively high loan to value (LTV) rate of 95%.

Despite recent cuts to the base interest rate by the Bank of England, many mortgage providers are failing to pass these cuts on to consumers. In a move born from greed, mortgage providers are keen to protect their profit margins at the expense of first time buyers, looking to get a foot on the property ladder.

Equally, with so many established home owners able to use the equity from record breaking house price rises in the last few years, it is becoming more and more difficult for first time buyers to find competitive mortgages. The high LTV first time buyers require also weighs heavily against them when compared against the equity heavy home owners who are moving properties.

In the face of the deepening subprime crisis, and facing significant profit cuts or even losses, mortgage lenders are now tightening their lending criteria. The fear is that the 95% LTV mortgages days are numbered, as lenders push for larger deposits and smaller LTVs. On top of this lenders are weighting interest rates to discourage borrowers from taking up high LTV mortgages, forcing buyers to come up with much higher deposits.

The increasing cost of University education is also taking it’s toll. With UK students leaving University with an average of GBP13,000 of debt, it is taking longer for buyers to save up their deposits. Student loans are no longer the sole source of debt for students, with reckless lending by banks and a number of credit cards aimed at students all increasing the burden of debt for many young people.

Juggling their existing debts while struggling to qualify for lenders’ increasingly harsh mortgage qualification criteria is making mortgages for first time buyers tougher than ever. With a gloomy financial outlook, both for the UK and globally, this trend looks set to continue for some time.

Tom Kranz writes articles on debt prevention and management, debt management solutions, and debt management programs. His articles regular appear on finance-portal.co.uk.

These Canadian government grants for first time homebuyers are making it possible for people to get into their first house much sooner than they would on their own. In addition, because there is no interest on the money and no monthly payment it makes it a little easier to qualify for a mortgage. If you’re wondering if you will qualify for the government grants, for first time homebuyers you will be happy to know it is available, however if you have owned a house previously you do not qualify.

You must also have good credit to qualify and a preapproval from a bank showing that you are approved for a mortgage. It is important to note that not all banks will allow you to use a down payment that comes from a government grant. First time homebuyers should seek out the help of a mortgage broker in this situation, they are aware of the banks that will allow down payments from the Canadian government grants for first time homebuyers program.

So how does a person get a government grant? First time homebuyers must first speak to a mortgage broker and fill out an application for a preapproval. The mortgage broker should be able to tell you who is administering the program in your area. Once you get a pre approval, you will then make an appointment with the person in your area who handles the government grants. First time homebuyers may find the experience a little overwhelming but your mortgage broker will help guide you through the process.

First time homebuyers should be aware that it is necessary that you have some money saved by the time you move into your new house. The bank will want you to save up enough to pay for your lawyer fees and any other costs you might incur at closing. These are called your closing costs and the amount you should save is 1.5% of your house value, so if you buy a house worth one $100,000 you will need $1500 for closing costs.

Many people ask if they have to pay back the government grants for first time homebuyers, and the answer is no, however there is a catch. If you live in that house for twenty years you don’t have to pay it back, if you sell the house before the twenty years then yes you have to pay it back when you sell the house. The good news is that there is no interest on the money so the balance won’t grow, and you can even keep the appreciation in the house. What that means is, if you buy a house and then sell it five years later, and it’s worth 20% more than when you bought it, you can keep that.

This is an amazing chance for first time homebuyers, if you’re ready to buy a house but you don’t have enough of a down payment its perfect. The best thing is, houses grow in value about 5% each year and if you had to wait an extra year to save for the house you like today, it would cost you 5% more to buy. If you’re interested, don’t wait because the Canadian Government Grants for first time homebuyers program is over in March 2009.

Mortgage agents with Real Mortgage Associates are devoted to helping first time homebuyers through the process of purchasing a home.

They will also provide information to anyone interested in learning about the Canadian Government Grants.

A lender uses certain methods to find out how much you can borrow. You can also figure out the amount of your mortgage payments by using a mortgage calculator. They are available online. You fill in the information and than click the calculate button. Most calculators are for fixed rate mortgages. Lenders or creditors want to make sure you can pay them and often use a debt to income ratio to measure how much money you owe to bill collectors. This will also let you know how much you can afford to buy a home including the principal, interest, insurance and taxes.

There are different types of a home mortgage loan so make sure you find out information about each one before you choose. Your interest rate can go up and down with an adjustable home loan. The problem with this type of loan is when the rate goes up than your monthly mortgage payments will be very high. You don’t pay principal with an interest loan which can make your monthly payments low. This may not be good because you might not build up any equity in your home. Fixed rate mortgages are great because you’ll always know how much your mortgage payments will be because they stay the same no matter what.

Applying for your first home loan can be tricky, and the most important thing you can do is look to those around you for advice – those who have done it before, those whose financial knowledge you trust, and any other experts you may have in your trusted circle.

Even though things are different than they were three or four years ago, when it was possible to get your first home loan even without sufficient income or credit, it is still possible for responsible, stable individuals to qualify for a loan. The key is to do your homework and find out what programs are available for first-time home buyers.

When looking into your first home loan, it is advisable to have a friend or family member who understands contracts to help you with the paperwork; otherwise it is all too easy to misunderstand what you are signing. While contracts are not necessarily designed to be purposely confusing, they often can seem so to the first-time home buyer.

Also important when applying for your fist home loan is understanding exactly what the lender is looking for. Many items will be required: bank statements, W-2s, paycheck stubs and more. Essentially, the lender wants to know that you have the income and ability to repay your first home loan. Be patient during this process; give the lender what they are asking for and work with them to understand exactly what format they need it in. This is another time it is extremely beneficial to ask the advice of those who have gone through the process already; they can let you know what is normal, what may seem a little out of the ordinary, and most importantly, give you the reassurance you need.

Applying for your first home loan is not a simple process, but the rewards are worth it.

You can learn more about how long it takes to secure a home loan, and get much more information, articles and resources about mortgages and home loans by visiting Home Loan Archive

The best way to find a good mortgage rate is to compare mortgage prices through plenty of researching. This may seem like a job that would take up most of your time on the internet, but without prior knowledge of mortgage rates and repayment options you are more likely to encounter plenty of financial difficulties. The problem that many people have faced when applying for mortgages is that they have applied for more than they can pay off in a month.

When you compare mortgage rates, you will find that banks or lenders offer more than just the mortgage. Often they offer insurance, capital only repayments, interest only repayments, capital and interest (standard), fixed interest payments or flexible mortgage repayments. Each of which the borrower will need to have looked into before putting all of their eggs in one basket. The way to compare mortgage rates is not just look online but to talk with professionals who have experience within this field, such as estate agents, lenders or banks.

Other ways to do this without feeling the need to buy something or agree to something is to read up financial articles from experts in this field. This may include going onto specialised websites on mortgages, which allows people to gain tips and advice on the best approaches to choosing something that will benefit them and not compromise their repayment abilities. What first-time buyers must understand that the market is always changing, therefore, interest rates will fluctuate and relying solely on your income is not the only way to maintain your financial position.

In the good old days of saving for a deposit and applying for a mortgage to buy a house, all people would have to worry about was working to keep the mortgage payments coming for their house. These days it is not as simple as holding down a normal 9 to 5 job just to pay off your mortgage, a lot more emphasis is placed on watching the market and seeing how your money will grow. A home is not just a home; it becomes an investment opportunity or asset. Therefore, one would need to make a careful decision about the kind of house they buy, in what location and whether it will prove to be an investment to them.

For those who have a bad credit history, there is light at the end of each tunnel they travel down. When you compare mortgage prices for people with difficulties in gaining any credit help, a lot that is offered usually proves to be more stretching than what it was from the beginning. The best thing to do is to make savings for a deposit substantial enough for the lenders to feel that they will not make a complete loss in lending you the money. This will also provide you with good mortgage repayment offers and a smaller risk on losing out.

Anna Stenning is knowledgeable on the best way to compare mortgage rates and how to go about applying for mortgages without compromising your finances.

Most mortgage lenders have tightened up their lending criteria. Last year it was possible to opt for mortgages covering 100% or even 125% of the property value. Most lenders have now pulled their no-deposit products and buyers are having to save at least 10% to get a mortgage. According to Nationwide, the average price for a typical first-time buyer home is 156,636 pounds. So that would involve buyers saving over 15,000 pounds for a deposit. With stamp duty and fees this figure could rise to near 20,000 pounds.

The main reason that these products were pulled was the fear of negative equity. This is where the property is worth less than when you bought it. This would be a major problem if you were to sell the property, as it is possible that you wouldn’t make enough money to pay off the mortgage.

Although the housing market has significantly cooled, there is still activity. If you can secure a mortgage and afford the repayments then it’s fine to make the leap onto the property ladder. This is why many buyers are opting for an interest only mortgage. An interest only mortgage keeps the monthly repayments low as you are only paying the interest on your mortgage. It is important to have a grip of your finances as you are not making any repayment on the capital you have borrowed.

Although an interest only mortgage could increase the risk of negative equity, if it is partnered with a flexible payment plan then it allows lower repayments allowing you to ride out the credit crunch. The only problem would be if you were unable to make the minimum (interest) payments. As long as these remain manageable and you are able to stay in the property until the market is revived then purchasing now is not a risk.

There are other options available to get onto the property ladder. One of these options is to join forces with another first-time buyer. By ‘clubbing together’ you are able to significantly increase your buying power. This doesn’t have to involve sharing living space. For example, many first-time buyers are helped out with their deposit or mortgage payments by their parents in return for part-ownership of the property.

A variation of this is the guarantor mortgage. This is where instead of taking part-ownership of the property, the guarantor’s income is taken into consideration and they are liable for the mortgage payments. Some lenders will offer the option of the guarantor being able to support a percentage of the loan, as long as the buyer shows that they can afford the remaining percentage.

Once you have secured the funds it is essential that you select the correct property. It is essential to market the fact that you’re a commitment free first-time buyer! As house prices are falling, many sellers are having to negotiate their asking prices. If the property has been on the market for a while then it is a prime opportunity to haggle over the price.

There are some things that you should take into consideration to ensure your property holds its value. The main factors that i would recommend considering are the location, property type and state of the property.

It is essential that you thoroughly consider where the property is located. Seaside locations, market towns, commuter towns and attractive suburbs are always popular. Other criteria, such as where the property is in relation to reputable schools and local amenities are always important to ensure your property keeps its value.

The type property will also have an effect on your investment. Flats are available for less money, yet their price usually does not grow as much compared with houses. Another reason to opt for a house is that the market is currently flooded with new-build apartments.

Properties with distinguishing features are also highly sought after. The state of the property is definately worth considering in the current climate. A property in good condition can be seen as a better investment compared to a property that needs work. This is because although modernising has been popular recently, these projects are still expensive to purchase, making the potential for profit questionable.

In summary, if you find the right property in the correct location then it’s a good time to buy, as long as you are looking to stay in the property and can afford the mortgage repayments. If these payments are manageable then it is possible to remain in the property until the credit crunch blows over. There are many ways that you can ensure the payments are manageable, possibly ‘clubbing together’ with other first-time buyers or using a guarantor.

Patrick is an expert Research and Travel consultant. His current interest is in Birmingham Airport Parking, Birmingham Airparks.