Considering the mortgage market

First time home buyers looking to enter the market would be well advised to allocate some time to mortgage comparison in order to ascertain a clear idea of exactly what options are available to them.
The current economic climate for 2008 has reduced the options for anybody entering into the market, first-time buyers especially - and one of the options for those on the margins of affordability could be a fixed-rate mortgage.

This kind of mortgage may give apprehensive buyers some much-needed peace of mind as, by definition, monthly repayments remain the same regardless of fluctuating interest rates.

Such mortgage deals do not represent the optimum value in the market at present as interest rates are on the way down but, crucially, buyers will be unaffected if the trend is reversed.

Recent research by Fair Investment revealed that some 57 per cent of Britons would opt for a fixed-rate mortgage, with 30 per cent saying they would go for a short-term fixed-rate deal and 27 per cent feeling that a long-term would be the best option for them.

However, for buyers who are confident that they can roll with the punches in terms of interest rates, a tracker mortgage brings its own benefits.

The recent interest rate cuts implemented by the Bank of England have seen tracker mortgages hit their highest popularity level since 2005, with the possibility of further cuts on March 6th making this kind of deal an increasingly attractive proposition.

From a different perspective, professionals who are investing in property have recently been advised to ensure that mortgage repayments closely reflect their amount of rental income in order to pay less tax.

According to Firstrungnow.com, professionals may be wise to take out the biggest mortgage they can afford which will enable them to "offset the mortgage repayments" and only pay tax on the profit that they make.

Whether first time buyers or professionals looking to make a profit from property, some carefully considered mortgage comparison will go a long way.

There have been mixed blessings for first time buyers recently with an increase in mortgage approvals, offset by lenders withdrawing some of the more first time buyer-friendly deals.

As the trend for lenders is leaning towards the implementation of tighter lending criteria, first time buyers are the ones left feeling the pinch.

Until recently, first-time buyers were able to borrow up to 125 per cent of the value of their property but, in another case of companies following suit, all lenders withdrew such deals. Since then, an additional 15 lenders have ceased offering 100 per cent property loan deals amid the ripple effect of the credit crunch.