A report from Halifax says the average stamp duty bill for first-time buyers has almost doubled over the last five years. In the South East, South West and East almost all first-time buyers paid stamp duty, while in Northern regions only 42% were liable, the report said. The threshold at which buyers pay 1% has been increased to 125′000 this has helped first time buyer mortgages purchases.

“Stamp duty has again become an issue for first-time buyers because the stamp duty thresholds have not kept pace with house price inflation,” said Martin Ellis, Halifax chief economist.

“We call on all political parties to raise the stamp duty thresholds to compensate for house price inflation over the past decade,” he added.

According to a monthly survey from the Halifax, prices across the UK fell by 0.3% in February, taking the annual rate of inflation down from 4.5% to 4.2%. This is welcome news for anyone looking to arrange a first time buyer mortgage. It obviously is becoming a first time buyers market.

Shop around for a first time buyer mortgage many lenders still see new customers as good business. Have a look at what the smaller lenders have to offer, the big banks don’t fair so well in the lists of low cost lenders this time of year. Some of the best first time buyer mortgage deals come from Newcastle, Cheshire, Nottingham and the Co-Op bank.

You need the best first time buyer mortgages available, no doubt you will have a lot of questions to ask. First and foremost, what are the best first time buyer mortgages deals for first time buyers?

Should I opt for a fixed rate for 3 or 5 years, a capped rate, a discount or a tracker, which could put my monthly budget at risk for my first house? How do I get my first time buyer mortgage? Should I go to a bank, broker, building society or a specialist lender when I’m buying my first house? How much can I borrow for my first mortgage, and how much will it cost me?

If your entering the world of mortgages for the first time you should always shop around and get a few deals. Speak to your bank about first time buyer mortgages. Don’t just consider what you can afford now; always consider how your finances will fair over the next 3 to 5 years. What if income changes for the worst you will still have to pay this first time buyer mortgage. Fixed rates provide stability. Trackers give you a chance of beating the market. Better to be safe than sorry!

Many first time buyer mortgages borrowers overstretch themselves. That property you always want is just that extra five or ten thousand more. First time buyers have time on their hands and are always optimistic. Most people expect property prices to rise; this may be the case over 25 or 30 years. But always consider the short term be realistic.

When you’re in the property with what you have considered being the best first time buyer mortgage available to you at the time of  your purchase, enjoy the fruits of your hard work. Welcome to the housing ladder!

So you still need a 100% mortgage. What you need to be careful of is not overstretching yourself to far that you can’t afford to pay the bills. 100% mortgages are commonly used to help people get onto the housing ladder.

The obvious concern now is will you be able to afford the mortgage payments when you fixed rate comes to its end. Always consider a longer fixed period, this will hopefully give you time to adjust you finances to suit your commitments. 100% mortgages are still available and for someone with a long term plan and a well managed monthly budget they can still offer a way of purchasing your dream home.

100 % mortgages are a loan for the full purchase price of the property, lenders are not offering any more than this. 125% mortgages have all but dissappered for now.

100% mortgage choices are limited. Very few lenders offer 100 percent mortgages and the ones that do offer 100 percent mortgages have always charged a higher interest rate than they would for a mortgage covering a lower percentage of the purchase price. i.e. 97% or now more commonly 95% & 90%. 

As well as having to pay a higher interest rate due to the risk taken by the lender, you may be charged a larger higher lending charge premium (also referred to as mortgage indemnity guarantee MIG) than if you put some of your own cash towards the purchase. However, to help with your initial upfront fees, most lenders will allow you to add the MIG to your 100% mortgage. You have to consider that you will be paying interest on the MIG for many years.

There are now some mortgage lenders that offer 100% mortgages without charging a mortgage indemnity guarantee premium. These 100 percent mortgage lenders also can lend higher than standard income multipliers they are generally 4 times your income, however their interest rates for these 100 percent mortgages are again higher than a 97 & 95% mortgage.

If you are borrowing the maximum 100% mortgage, you should consider a fixed or capped interest rate mortgages, since these buy valuable protection against the risk of rising mortgage interest rates.

Looking for a shared ownership mortgage. Many first time buyer mortgages are for a shared ownership mortgage which suits their needs?  Every one wants a cheap shared ownership mortgage deal at the best rates available.

Shared ownership mortgages are usually arranged on a 100% mortgage, 50% or 25% part rent part buy basis. For many people across the country this can be the only way to get a foot onto the housing ladder they are very popular with first time buyers.

When you buy a shared ownership property, you only buy a percentage stake in the property, usually 25 to 50 per cent – from a housing association. Although this can be affordable, as you only own a percentage of the property you will miss out on some of the equity growth if the housing market starts to rises again. You can, however, staircase which means buying another portion of the property later on. Many lenders insist that this option must be available.

Cheap shared ownership mortgage rates enable a borrower the following benefits, Low interest rates, easy repayment options. Remortgage loans replace the existing shared ownership mortgage with a new one from either the same lender or a new lending company. It helps to reduce monthly payments and release home equity. Competitive shared ownership mortgage deals help individuals become financially stable.

Getting a cheap shared ownership mortgage could be a way of reducing your monthly outgoings for other expenses.  Many lenders are now offering more competitive interest rates to attract new business, ask your broker to source different deals from different lenders to compare which is the cheapest shared ownership deals

Once you have registered for with an affordable housing company you will be assessed for eligibility. If you are accepted remember to enquire what the rent will be for the share you will be renting as your broker will need to know when applying to a lender for a decision in principle.

100% mortgages lender Northern Rock has decide to pull out of the high risk 100% to 125% mortgages market. This type of loan has been a favourite of many borrowers who have used this 100% mortgages product to secure a property and get a loan.

The 100% mortgage product has been criticised for encouraging people to take on larger loans. The reality is most people were just consolidating existing loans and getting the same rate as their mortgage. In a rising mortgage market this concept worked very well. As the property was increasing in value this gave the owner a sense that existng loans were being paid off.

Tens of thousands of Northern Rock customers may eventually be forced to remortgage at much higher interest rates when their current offers expires many two fixed rates at 5.99% will be coming to an end in 2008.

“Our present lending appetite has changed,” said a bank spokesman.

“And demand for this product has now fallen to negligible levels, so we are withdrawing it,” he added.