Thinking about a mortgage

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There are several reasons why now is a good time to buy a house. Courtesy of the Bank of England''s unprecedented base rate level of just 0.5%, mortgage rates even for first time buyers, are relatively affordable.

Inflation isn''t exactly helping the economic recovery in the UK; which is recovering at a snails pace compared to many other parts of the world, but it doesn''t mean you can''t still find a decent deal if you know where to look.

First time buyers in particular need to act quickly if they are going to get a good deal. After almost a year of a stagnant house prices, they are now on the rise. Estate agents reported a 1.1% rise in prices in March and now April has witnessed a further hike of 1.8% ? the biggest increase since January 2008.

First time buyers should just view a property as a home, it is an opportunity to get onto the ladder. If you buy the right home, you can climb this ladder when you come to sell. You probably won''t get your dream home first or even second time round, but you might get lucky third time round.

But taking on a massive mortgage of at least ?100,000 or so is daunting for anyway, and for first time buyers it is terrifying. So, before you jump on the mortgage bandwagon you need to make sure you can afford to pay for one.

Most people won''t want to pay more in mortgage repayments than they currently do in rent, so this means you need to be realistic about how much you can borrow. The bank is only likely to lend a maximum of four times your salary and if you are buying with a partner then they may offer you less than this. You then need to save a deposit, which even for first time buyers is around 10% ? gone are the days of 110% mortgages ? which is tricky if you are on a meagre salary paying big-city rent.

Remember however, that even though you can get four times your salary, you might not be able to afford the mortgage repayments. Before committing to a mortgage you need to work out how much you can actually afford to repay on a monthly basis, and for how long. Don''t just base this amount on your current rent; when you have your own house if something goes wrong you won''t be able to call the landlord and have him fix it. What''s more, a house doesn''t come furnished. So don''t overstretch yourself.

Make use of online mortgage calculators to ascertain your level of borrowing and your monthly repayments. If you know all this before you step foot in a bank you are more likely to get the mortgage you want.

Article Source: http://depositarticles.com/

Christel Sachleben is a mortgage expert and writer with 10 experience in the property market. They recommend you use Santander''s mortgage calculator.

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