Stick to an affordable mortgage, says expert

Date:Wednesday 21st April 2010
Author: Susanna Kavka

People buying a home should not overstretch themselves financially when they take out a mortgage on a new home, according to a representative from Ducalion.

Head of consulting at the firm Timothy Lambert stressed that now could be the right time for people to buy a property, but it is essential to keep an eye on how much it is going to cost in the long term.

He explained: "Whilst a variable mortgage may be cheap now, it will not stay that way forever and buyers must be aware of this before biting off more than they can chew."

Mr Lambert predicted that the speed at which interest rates are lifted will have a major effect on how many households can hold on to their properties, but there are currently some good mortgage rates to be found by first-time buyers if they have a large enough deposit.

He made his comments following the news that the National Association of Estate Agents has seen an increase in average number of individuals using its branches to find a house.