Don't get sucked in by the mortgage sector hype!
While liquidity in the UK mortgage market has been reduced somewhat over the last couple of years we are starting to see competition emerge and various offers appear. However, it is essential that you are not blinded by any potential short-term bargains and short-term discounts to the detriment of your long-term financial health.
We've all seen those "teaser" mortgage agreements which offer you highly discounted initial payments which seem attractive at the time although you will pay for these in the longer term. It is worth remembering that no mortgage company will give you money for nothing and any discounts which you take up in the early days will see your interest repayments increase in the longer term because you have paid off less capital in the short-term.
One of the common promotions in the UK mortgage sector is to offer a relatively small down payment in order to attract new home buyers into the market. While the UK, with deposits in the region of 30% at the moment, is not currently in this particular mode it will return in due course and tempt many first-time buyers into mortgages which ultimately they may struggle to keep pace with if interest rates move higher. If it looks too good to be true then there is problem some catch and you need to be fully aware of your short, medium and long-term obligations.
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