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Financing your first home
Offset mortgages
An offset mortgage in its own right is most suited to borrowers who have a considerable amount in savings. The debt of their mortgage is then offset against these savings so they pay interest on less money.
For example, if your mortgage was £100,000 and your savings totalled £20,000, you would only pay interest on the remaining £80,000.
However, most first-time buyers - if they have any savings at all - may prefer to put them towards a bigger deposit. The effect of this is also to pay less in interest, as not only is it a smaller mortgage, the lower your LTV, the lower the rate of interest you will have to pay.
Some mortgage lenders now provide offset products that offer the same benefits but use your parent's or family's savings instead to counteract your debt. As any savings linked to the mortgage are in effect an overpayment, the mortgage also allows the borrower to underpay and even take payment holidays, which can be helpful when it comes to life-changing events such as having a baby.
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 FirstRungNow has been set up to help first time buyers.
With prices so high in the UK, many need to be shown what the financing and ownership options are. FirstRungNow is the place to go.
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The Key Worker Living scheme was launched in the spring of 2004. Are you entitled?
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Buy a share of a property, and pay rent on the rest to make it affordable.
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If you are thinking of buying a first home, it is important you find out how much you can borrow and you understand the costs and how much deposit you will be able to put towards it.
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