Getting onto the property ladder

April 26, 2011 - PRLog -- Since the economic crisis started affecting the mortgage market in mid-2008, first-time buyers have been struggling to get on to the property ladder. The amount of mortgages available has shrunk dramatically, mortgage lenders have been demanding large deposits for people to qualify for the best rates or to get a mortgage even, and lenders have also been a lot more strict with the information they require.

Just 194,600 people managed to get a mortgage to buy their first home in 2010, well down from the more usual half a million people who managed to climb onto the property ladder most years in the decade or so before then. First-time buyers currently need to find deposits of about 20% of their property's value, and the average age for people buying their first home without financial help from parents, is 31.

But now there's some good news, in the shape of a new government scheme to help them get on to the property ladder. The Government has put aside £250 million to help around 10,000 households with incomes below £60,000, to buy a newly-built home.

Under the FirstBuy initiative, if buyers can save 5% of their property's value, the Government and the housebuilder will put up 10% each through an equity loan, so people can qualify for 75% loan-to-value mortgage. The equity loan will be free of any interest for the first five years, with interest of 1.75% in year six, and at the inflation rate plus 1% after that.

This is very handy news for first-time buyers, but they will want to make sure that they can use this help to their advantage by ensuring they meet all the other criteria that will be asked and checked by the mortgage lenders. If their finances are not in order they may not qualify for a mortgage and it would be a shame to miss out. So if you are applying for a mortgage, it pays to make sure there are no hitches in the process.

One simple way is by checking your credit report before you apply, with http://www.creditratingmatters.co.uk - you can also learn more about credit reports, and see what different elements are held within it.  Credit Rating Matters is a membership programme which provides access to a Callcredit credit report and credit rating. These credit tools are provided by the credit reference agency Callcredit Limited, and may provide an insight into anyone's financial positioning in the eyes of lenders.

This way, you can see exactly what the mortgage lending companies can see about you. You can check that there are no outstanding credit payments, credit applications falsely made in your name, nor any history of missed payments. The lender will be checking all of these things too.

Each application made for credit leaves what's known as a ‘footprint’ on a person’s credit report. So by first assessing your finances and reviewing your credit report at Credit Rating Matters, to ensure there are no anomalies, you could put yourself in a better position when making a mortgage application.

Membership with Credit Rating Matters provides unlimited online access to ones Callcredit report and rating, so anyone can monitor their financial position. Once details are successfully verified, people can view their Callcredit credit report as often as they like. The report will update periodically and reflect changes in financial activity. At www.creditratingmatters.co.uk you will be able to try the membership first, and cancel if, ultimately, you feel the service is not right for you.

To join Credit Rating Matters please visit http://www.creditratingmatters.co.uk  Credit Rating Matters is an online membership programme, which gives you access to your credit information held by one of the UK’s leading credit reference agency.  Credit Rating Matters is a membership programme and monthly membership fees are payable after any free promotional period has come to an end.