Advice for First Time Buyer

Im looking into purchasing my first home and have read through the free pdf on the moneysavingexpert website. I understand the financial aspect quite well but I need some advice as to whether now is the right time to buy in my situation.

I wanted to buy a house a couple of years down the line but I feel that my hand is being forced by the new mortgage guarantee scheme coming 2014. I feel fairly comfortable with my deposit (I can afford 20% now and possibly 25% very soon, taking into account fees and other costs etc) but I am a little more worried the new scheme pushing up house prices significantly. This would make my deposit go less further, thus making my mortgage more expensive in the long run.

Here is my situation:

• I earn 27k a year.
• I can afford a deposit of 20-25% of the house value
• I am looking at buying a house for 125k

I am correct to be concerned about the new mortgage guarantee scheme? As I understand, this scheme is designed for those with low deposits. However, I am more interested in low monthly payments.

Could I also use a mortgage broker (eg. London & Country) with no obligation if I change my mind about getting a mortgage or going with another broker?


Thanks.