Is now the right time to get a mortgage?

shadia1

My partner & i have been saving to buy our first home.We would like to buy a house for approx £150,00 & have raised a 5% deposit ourselves. However on meeting with our independent mortgage advisor yesterday he suggested we should consider waiting a couple of months to see what happens with the interest rates as they are very high at the moment. His other suggestion was to take out a capped variable tracker rate mortgage for 2 years & then change it after this time.

I'm not sure what to do as obviously interest rates may rise again plus property prices are going up dramatically in our area. Any advice would be gratefully received.

Thanks

Guy_Montag

Funny, I thought interest rates were at historically low levels, even at 5.25%. The market has them priced at 5.75% by the end of the year, but really it's anyone's guess.

ollyshaw

Sounds like you have thought things through. Its up to you now! Do you want to wait a few months to see what happens or dive in now? No one really knows what is going to happen to interest rates.

Olly

tenroom

Depends on whether you care a jot about effectively losing your deposit when property values in your area fall which they inevitably will. Why pay more for something now when you can get it more cheaply by waiting ?

If, however, it's IMPERATIVE you buy now then, as a previous poster said, you've thought it through so you might as well bite the bullet.

fimonkey

Completely agree with above posters, BUT... a mortgage advisor advising you to wait?? (after all they make money on the mortgages you decide to buy).. What's his motive?

tyllwyd

Have you found a house you would like to make an offer on? If not, I'd be inclined to keep looking anyway, because it might well take several months to find the right property. By the time you actually come to apply for a mortgage, things may have changed (in either direction, of course).