When you set out to buy your first home, it can be a very daunting experience, primarily because it will most likely be the single most expensive financial investment that you will ever make. This makes the need to find the right property together with the right mortgage even more important.

Buying a house can be a very stressful experience; however, this doesn't necessarily have to be the case. Although searching the market for the right mortgages for you can often mean searching a wide variety of companies and their varying mortgage deals, which often adds to the stress, this needn't always be the case. If you were to simply plan your needs and requirements and therefore narrow down your options, you will find that you can often solve this initial dilemma quickly and easily.

The very first decision that you will have to make will be deciding whether it would be financially viable for you to buy a house, as you will have to raise the deposit for the house. This is no easy task; however, if you were to be able to offer the deposit and also have a sufficient income, then you can probably afford to go ahead with buying your first home. For many people who are renting and considering buying a house, it is worth looking at how much you are paying monthly as this can often be more than you would be paying for a mortgage. This coupled with the fact that you are seeing no equity would suggest that it would be more worth your while to buy a house and take out a mortgage on it.

Before going out and finding a lender, it is worth calculating how much you will be able to borrow. To do this, work out the lump sum that you can get together and then find how much disposable income you will be left with on a monthly basis.

It is important to borrow realistically and to remember to budget for unforeseen situations. If you are buying a new house then it may just be a case of budgeting for decoration and furnishings; however, if you are buying an older house, then you may need to make sure that, in your initial financial analysis, you have enough money for possible renovation, such as; plastering, flooring, structural or electrical work. Also remember that any legal fees, admin and stamp duty will also need to have been accounted for.

A very important decision to make is what type of mortgage will suit you best. If you have a bad credit history, you may find that this will prevent you borrowing from the high street lenders, meaning that you will have to look elsewhere on the market.

Fixed rate mortgages are usually the best option for first time buyers. This is because they provide a fixed interest rate for a set period (usually between 2 and 5 years). The advantage of this is that you know exactly how much you need to pay out each month. There are other schemes, including; current account, trackers and variable rate mortgages, however; these are usually more risky, but you will need to decide on which is right for you. If you are not sure which option would suit you best, it is advisable to speak to a qualified professional advisor.

It is important to first decide what type of mortgage would suit you best.

Fixed rate mortgages are usually best for first time buyers.

Current account, trackers and variable rate mortgages are usually more risky.

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