Ian Hudson is an IFA with Hudson Green

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Given the current economic climate, would I be better off getting onto the housing ladder now with a 100% mortgage or waiting until I've saved up enough for a deposit and buying a property a few months/years down the line?
- IG, Newcastle

This is a good question, one which many people are currently asking themselves, so you are not alone.

With any large purchase which is going to commit you to a long repayment period, there are a number of principles (or questions) that you need to confidently and positively answer before you jump in with both feet.

It is even more pertinent when you are making that purchase without adequate capital behind you for emergencies; I have outlined some of the main points that you need to consider below:

1. Given your current position, can you afford the interest and/or repayments for the foreseeable future?

2. In the event of an unforeseen change in your current position, would you be able to continue making the monthly interest payments?

3. If you need to sell your home for whatever reason, how would you feel if you did not achieve the purchase price you paid for it?

4. How would you manage to repay the debt against your mortgage if you did have to sell for less than the purchase price?

5. What are the drawbacks of purchasing now versus the drawbacks of waiting?

Only when you can sensibly answer these questions, ought one to consider making a commitment for the very long term, particularly in today's uncertain interest rate environment.

Ian Hudson
Tel: 0800 043 1355
Email: ian@hudsongreen.co.uk