• 8 months ago
Here is your guide to mortgages for first-time buyers.
Transcript
00:00 Here's your guide to mortgages for first-time buyers.
00:05 Now, a first-time buyer is defined as someone who has never owned a freehold or leasehold
00:10 interest in a residential property.
00:12 A mortgage itself is a loan taken out to buy a property.
00:15 Whilst mortgage terms can vary, most run for around 25 years.
00:20 You'll need at least 5% of the purchase price of the property to put down as a deposit.
00:25 You'll then borrow the rest of the money from a lender, such as a bank, and pay back the
00:29 lender until it's completely paid off.
00:31 So your mortgage rate is the amount of interest you'll pay on the money you borrow to buy
00:36 a property.
00:37 Mortgage rates have fluctuated a lot over the years as they're impacted by inflation
00:41 and economic growth.
00:43 But according to the Evening Standard, the top barriers for first-time buyers wanting
00:47 to get onto the property ladder include high house prices, saving for a deposit, and the
00:52 ability to afford the monthly mortgage repayments.
00:56 But what do you think?
00:57 Do you think it's a difficult time for first-time buyers to get onto the ladder?
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