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First Time Home Buyer-3 Ways To Lower The Cost Of Your Mortgage By 70%

Updated on May 19, 2009

Despite their being a global credit crunch in force there are still great deals available to you if you are a first time home buyer. In fact because of advances in technology (especially computer) buying your first home has never been easier. If you are on a limited budget or have slightly larger funds at your disposal you may just be interested in these 3 mortgage saving tips.

1)Find a co-buyer for joint equity

This is one of the more unusual ways for you to climb the property ladder, providing that you don't have a problem with sharing your living space with a stranger.

Finding a property co-buyer has obvious benefits in that it can more than halve the deposit you need to come up with. You also get the added benefit of not being forced to live in a run down area because of your lack of available funds. There are of course hidden dangers that could surface if you choose to use this method,most of them involving legal papers simply put just make sure that you take every precaution before entering in to any co-buyers agreement.

2)Repossessed Property

Unless you want all of your friends to see you as a cold hearted machine, I would not recommend that you tell them about your repossessed property.There is a Hugh stigma attached to these type of purchases, but in these troubled times this could turn out to be your best chance of owning your own property.

The bad news for you is that mortgage buyers are rather coy about revealing whether or not the property that they are selling has been repossessed because they want to come across as warm and friendly home makers and not home takers.

That being said, there are still plenty of companies who will be more than willing to provide you with all the information that you need for a great repossession deal. Another option that you may want to pursue is to visit your local mortgage advisor. Although the information may not always be readily advertised, lenders still need to make money out of the property so an enquiry is often welcome.

The old saying "Let the buyer beware" has never been more suited when purchasing repossessed properties. Before you decide to buy you should be asking yourself "why is this property so cheap" and where is the property located. The last thing that you want to find out after you hand over your money is that a brand new motorway or (Freeway if you live in the USA) is been built behind your new home.

3)Reverse Property Auctions

Here is where the Internet and the property market combine with devastating effect.Reverse Property Auctions are a relatively new concept, which has become increasingly more popular due to improved computer technology.

Imagine getting a property with a market value of £180,000 for less than £10,000, this is possible (in theory at least) due to the unique way that the scheme works.

You as an interested buyer would make your bid at say £3 via the Internet or SMS, this bid price allows the operator of the scheme to recoup the associated cost of the property and auction process.Your bid is matched against other interested parties who have also placed their bids.

All of the bids are set at a maximum of 5% of the properties true value in our case £180,000 which makes the property sell from anything between 1p and £9,000.

If you are tired of being shut out of the property market, then the Reverse Property Auctions could be the answer to your prayers but like all new things you should proceed with caution and careful planning.

How Not To Bid At Auction


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    • Lgali profile image

      Lgali 8 years ago

      good points