If you are thinking of buying a property, it never seems to be the right time. First you have to save enough for the deposit which has been harder as the banks are demanding higher deposits due to the recent economy news.
Although it is in theory a great time to buy now as interest rates are so low, it is made very difficult by the banks who are loathe to lend in this economic climate, so even through rates are low, mortgages are hard to find, especially for first time buyers with no proven track record of repaying their mortgage loan.
Now is also a good time to buy as property prices have dropped slightly than they were previously and as many people are keen to sell you can end up getting a bargain. On the downside, it seems that nobody’s job is safe from redundancy at the moment and many people are reluctant to commit to a mortgage.
You have to weight up the pros and cons. If you are eligible for a mortgage, you may just have to put your fears aside and take the plunge before the interest rates go up again.
When working out your budget though, you have to factor in that the interest rates are likely to rise again in the near future, so make sure that you can afford to pay your mortgage back if the payments are increased.
