With all the attractions of a south coast resort, yet with central London less than an hour away by train, Brighton is understandably a sought-after place to live.

But if you are just starting out on the property ladder, you’ll be just as interested in knowing whether first time buyer mortgages are available here. So it might be helpful to know the average price of a house in Brighton is £405,904, and flats sell for an average of £291,833.

With our help here at Fogg Financial, you can check out some of the many options open to you and hopefully buy your first home in Brighton – or somewhere else in the country I guess – with the peace of mind in knowing you have secured a good deal at a competitive rate of interest.

Features of first time buyer mortgages

Whether you are looking for a first time buyer’s mortgage in Brighton or elsewhere, here are the types of mortgage we can help you get, together with some of the factors that probably weigh on your mind:

Types of mortgage

  • repayment mortgages are perhaps the most straight forward, since your monthly mortgage payments cover both the amount you borrowed and the interest owed – by the time you reach the end of the mortgage term you have paid off the whole of the loan;
  • interest-only mortgages involve the repayment of just the interest on the loan and, so may appear to be cheaper than a standard repayment mortgage – but, don’t forget that the repayment of the capital needs to be repaid at the end of the mortgage term, so it’s important to have a plan in place to pay this off;
  • a mortgage may charge you a variable rate of interest, changing each month in line with the Bank of England base rate – so the amount you are paying in interest each month may increase or decrease in line with that;
  • to help you budget better, repayments of your first time buyer’s mortgage can also have a fixed rate of interest for the first few years, after which time your mortgage reverts to the lender’s standard variable rate of interest;

The deposit

  • probably the scariest part of buying any first home is the size of the deposit you need to save;
  • typically, this ranges between 5% and 25% of the purchase price of the property – in our example of Brighton, therefore, you may need a deposit of around £20,000-£101,000 to buy a house, or between £14,500 and £72,500 to buy a flat;
  • first time buyers may be looking at the lower end of these ranges – where the percentage of the mortgage to the price of the home is closer to 95% (a 95% Loan to Value ratio) – but the general rule applies that the bigger your deposit the more favourable terms you are likely to be offered on your first time buyer’s mortgage.

Why choose Fogg Financial?

Did you know that when it comes to mortgages, there are some 14,000 different products to choose from?

It is a highly competitive market and making the appropriate choice may be overwhelming. That’s why we’re here to help – not just to pick your way through the many different products on offer, including first time buyers’ mortgages, but to find the one that is especially suited to your particular, individual needs and circumstances.

Get in touch today to let us help you get on the housing ladder.

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