Purchasing a home is one of the monumental steps that at some point in your life you will cross.  However, purchasing a house is much more complicated than it may seem without even accounting for the cost of such a large scale purchase.  This is why as a first time buyer it is important to do you research on first time buyers mortgages and what all they include.

There are many different types of first time buyers mortgages, some of which include parents, shared mortgages, family offset mortgages, pension income mortgages, and co-buyer mortgages.  Each of these is designed for different needs, so you will need to carefully access your ability to pull together a deposit and evaluate each of the mortgage types to narrow down what type of first time buyer’s mortgage is the correct choice for your income level and future financial stability.

Some people choose to get first time buyers mortgages in a group, which is sometimes referred to as a simple group mortgage, friends’ mortgage, or mate’s mortgage.  Regardless of the way you decide to approach this type of mortgage, generally it includes a group of up to three people applying for a mortgage together so that they can meet income requirements and allow people to make an investment towards their future at an earlier age.

Another type of first time buyer’s mortgage involves using one’s parents’ status in life to help secure a mortgage of their own.  Parents may be able to assist by providing a deposit, supplementing mortgage repayments, or simply list their income to help a child gain access to better mortgages.  Parents can also offer a ‘guarantor facility’ on the mortgage loan which means that they will be legally responsible for the portion of the loan that the child alone is not qualified to receive.

Also popular, are first time buyer family offset mortgages, which allow parents to link their savings to the mortgage of a child if they are a first time buyer.  This type of mortgage also extends out from parents to include the savings and voucher of any blood relative.  Thus, the amount of interest that is offered on the mortgage is lowered allowing for better monthly repayment terms.

Parents can also aid by using their pension income to reduce the interest on a mortgage, which is known traditionally as a pension income first time buyer mortgage.  In this case the pension income is treated as a salary although most mortgage lenders will only offer mortgages that are shorter in term or on an interest only term.

For those who do have family that can help them out, there is also an option to secure a first time buyer mortgage with a co-buyer.  In this scenario the co-buyer will sign into the mortgage, which will greatly reduce the amount of monthly repayments as well as the original deposit that is required.  This method is sometimes used so that a first time home buyer can afford a nice home in a better neighbourhood from the start.