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100% mortgages still available - but only at a price.

ONE hundred percent mortgages are still available for first time buyers. Be careful however - some of these mortgages can come with a slightly higher interest rate than a lesser percentage mortgage.

Many mortgage lenders have access to a whole range of products ideal for first timers buying their own home.

Most mortgage providers understand that buying a first home is a pretty daunting task so they do try and make the financial side a little easier.

As the name implies, a 100% mortgage provides the full purchase price for those buyers who don't have the benefit of a deposit. In some cases mortgage lenders can offer 105% mortgage, allowing you some money left over to spend on furnishings.

Some new-build companies have special offers for first time buyers which can include 100% mortgages, help with legal fees or items such as free carpets, kitchen appliances etc.

Never be afraid to ask about any of these options as they can all help with making that first step on the housing ladder.

Another option for first time buyers is shared ownership' of a property.

Some house builders now offer properties for sale which combine buying a percentage of the property and renting the rest off the builder for a number of years.

Shared Ownership Schemes offer a low cost way to get onto the property ladder and make housing a little more affordable.

This can be a great way to start off in the housing market for anyone can't afford to buy outright.

Schemes work when buyers take a 25%, 50% or 75% share in their home and pay a rent on the other share.

The bigger the share you purchase, the less rent you have to pay.

The monthly cost of buying a 50% share is about two-thirds of what you would pay on a normal mortgage to buy the property outright. When you can afford to do so, you can buy more shares until you own the home outright.

There are new-build homes now being developed in the local area which offer shared ownership schemes. Ask local estate agents for more information.
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Title Annotation:Features
Publication:Huddersfield Daily Examiner (Huddersfield, England)
Date:Apr 26, 2008
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