By Liz Phillips

Q. I want to buy a house and have saved about 10% of the likely purchase price. Should I buy now while interest rates are low and house prices have come down, or is it better for me to wait until I have saved up a bigger deposit?

A. The question is what is happening to prices in your area for the type of home you can afford? You can't beat local knowledge so at the very least you need to be scouring ads and estate agents' windows to keep up to date.

If, like most areas, your local housing market is in the doldrums you're not under pressure to buy right now, giving you time to save as much as you can towards a deposit. The bigger your deposit, the more choice you have and the cheaper the mortgage rate will be.  Do make sure you have a good credit rating in the meantime as this will make the process smoother when you apply for a home loan.

It's worth checking your file at one of the three main credit reference agencies – Equifax, Experian and Callcredit – to make sure there are no nasty surprises.  And keep on top of debts.

The best mortgage deals are for those borrowing only 60% of the purchase price, but that could take you ages to save up and lenders are starting to offer 95% loans so a 90% one shouldn't be that difficult. Don't forget there are buying costs too such as stamp duty, solicitor's and valuer's fees which can run into thousands. 

If you are renting, it is easy to work out if you'd be better off paying a mortgage than rent every month. You can also get an approval in principle for a mortgage, but lenders usually only hold a particular mortgage for you for around three months.