Should I get a mortgage? Is the time right for me?

At a time like this, anyone looking for a mortgage is probably keeping at least one eye on the financial news. What's happening with house prices? What's going on in the mortgage world?

These are big questions, but they may not be the most important. House prices go up and down, as does the cost of mortgages. The value of any property you buy today is bound to increase and decrease over the years, so unless you're planning to re-sell in the near future, any (relatively) short-lived price fluctuation may not really matter much to you.

What really counts is your own financial situation. Are you planning a family? Starting a new job? About to inherit some money? Worried about unemployment or retirement? The answers to these questions will probably affect your finances much more than anything that happens to the mortgage markets.

Mortgages - what's the alternative?

The other key question is simply: what's the alternative? Renting may be attractive in the short term, but rent money is basically 'dead' money - once it's gone, it's gone.

When you're paying off a mortgage, each monthly payment takes you a step closer to the day when the mortgage is paid off and the property is 100% yours. A mortgage may be a big commitment, but each time you make a payment, you're really achieving something.

That doesn't necessarily mean homeownership is right for you right now. Depending on your situation, it may make sense to wait. Living rent free with your parents, for example, can be a great opportunity to save up a deposit that could reduce the interest rate you're paying on your mortgage, the size of your monthly payments, and/or the actual term of the mortgage. Waiting for the next payrise could make a real difference to the size of the mortgage you're offered, or the terms that come with it.

Sometimes, though, there's no point waiting. Buying a house can work out significantly cheaper per month than renting - unless you have a good reason to wait, it's worth remembering that a mortgage can save you money in the short term as well as the long term.

Mortgage advice

The mortgage market isn't always easy to understand, but you're not on your own. The right mortgage advice from the right specialist can help you make sense of the various kinds of mortgage on offer, and find the one that's right for you.