Advice given on obtaining a mortgage

Date:Monday 2nd March 2009
Author: Rachel Fletcher

Financial website has given advice to first-time buyers who are trying to secure mortgages.

Young people were advised to live with their parents and save a deposit of at least ten per cent.

It was pointed out that even if financial contributions are required, this will still be less than renting commercially.

However, if it is necessary to rent, people should live modestly and save what they can.

Keeping one's credit rating healthy is also advised.

One way of doing this is to use a credit card regularly and pay it off in full, as not using a card at all does not create a record.

Furthermore, first-time buyers were warned that the greatest mortgage they are likely to obtain will be four times their salary.

Using social housing programmes to make a purchase with shared equity was encouraged, although buyers were warned that provision of such schemes is low.

Last month,'s head of mortgages, Louise Cuming, said that 2008's 54 per cent rise in repossessions demonstrated the "catastrophic effect" the recession is having on people.

She urged lenders to "respond directly" when struggling borrowers make contact.