Getting
to grips with a Mortgage
Leaving
university now and taking your first step on
your career ladder has never been harder. Unemployment
is high so more experienced people are taking
junior roles and with increasing numbers of
young people gaining degrees, competition for
those few entry-level positions is fierce. Some
jobs attract thousands of applicants for just
one position. You need to make yourself stand
out from the competition through extra-curricular
activities, possibly further study and more
than likely a good deal of un-paid work experience.
You
will also start your working life with a hefty
debt as tuition costs continue to rise. Although
you will pay a low level of interest and you
don’t start paying it back until you are
working and earning over a certain amount, it
increases the burden on recent graduates to
get a well-paid job. It also makes it harder
to get a loan or to save any significant nest
egg. But, don’t think that you can just
burry your head in the ground and the problem
will go away. As soon as you graduate you should
get your finances in order, because unfortunately
you will have to say goodbye to student discount
and £1 a-pint snakebite.
When
you have left uni and you’re on your way
to getting a good job, you should probably start
to think about a home. Buying your first home
is a huge commitment made even harder with over-inflated
house prices and a shortage of low-deposit mortgages.
However, if you get in early, like with your
career, you can start to climb up the ladder
earlier and faster.
There
has been some good news recently for first time
buyers, notably the stamp-duty ‘holiday’
announced in the most recent budget. This means
that homes up to the value of £250,000
no longer have to pay 1% stamp duty, a saving
of up to £2,500.
More
good news is the slight increase in the number
of mortgages requiring a low deposit. The number
of 90% mortgages increased in February by 33%
and the total number of mortgages has now increased
to 2,053 up by 70% on April 2009 levels when
the market was at its lowest.
So
there is hope. Try Santander’s website
for online browsing of their mortgages
for example; they have a range designed at helping
first-time buyers get onto the property ladder.
They have a four year fixed-rate mortgage for
instance, that requires only a 15% deposit and
4.8% APR. The sooner you get on, the sooner
you can start climbing.
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