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Is now the right time to get a mortgage?

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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

Comments

  • Guy_Montag
    Guy_Montag Posts: 2,291 Forumite
    1,000 Posts Combo Breaker
    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.
    "Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
    Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
    "I think I'll become an alcoholic," said Betty.
  • ollyshaw
    ollyshaw Posts: 704 Forumite
    Part of the Furniture Combo Breaker
    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
    ## No signature by order of the management ##
  • tenroom
    tenroom Posts: 32 Forumite
    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
    fimonkey Posts: 1,238 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    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
    tyllwyd Posts: 5,496 Forumite
    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).
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