Taking Out a Mortgage for the First Time? Learn Why a Loughton Flat Might Be a Great First Home

Are you someone who is getting very tired of paying rent every month and not building any equity? 

It can be pretty painful to rent continuously, particularly if you are working towards someone else's financial well-being. Thankfully, there are a few affordable alternatives available for people investing in their first home. 

We have outlined some good reasons to opt for a flat if you are a first-time homebuyer. 

A Manageable Monthly Payment 

In most markets across the country, you can find flats for a significantly lower process than full-sized houses. Purchasing a less expensive home essentially means that your monthly mortgage payments will also be low. 

If you are single or a young professional who wants to start a family, that additional amount can act as a massive boost to your monthly budget. 

Remember that although your monthly mortgage payment would be lower, you will still be required to pay other maintenance and upkeep fees. 

The most common one is service charges, which every flat owner in a development contributes to. This essentially helps in funding the upkeep of the building or property along with aspects such as landscaping and other amenities. 

A Smaller Deposit 

Along the same line, purchasing a less expensive home essentially means that you can place a smaller deposit. To benefit from better rates and mortgage products, a deposit of 20% is recommended. However, there is a return of 10% and 5% deposit mortgages, so it is best to speak to an all-market mortgage broker who can define the best product for your specific requirements. 

An Excellent Future Investment Property 

Remember that a flat can be kept as a rental or investment property once you upgrade and shift into a larger house. After your mortgage is paid off, you are merely responsible for paying the monthly maintenance fees. Suppose you are at a place where you can rent the flat out to a tenant. In that case, you can enjoy fantastic cash flow that can assist in paying for your new home or fund other activities. 

The reasons listed above are just some of the many reasons you can opt for a flat if you are a first-time buyer. 

If you want to learn more about your mortgage options, get in touch with us today.