The new decade has only just started, and in this economic climate it is difficult to predict what will happen next month, let alone over the next few years, but there are some positive signs for those looking to buy their first home.

Interest rates have been at their record low for over a year now and, crucially, most of the major banks and building societies want your mortgage business again. This competition for customers means that there are some very attractive deals to be had, particularly if you have saved a deposit of 25% or more, or the ‘bank of mum and dad’ has been kind to you.

However, if you are unable to raise this level of deposit there are other options which may help you borrow the money you need. Several lenders provide mortgages which need only a 10% deposit, and there are mortgages which allow you to borrow as much as 95% of the purchase price if you have a parent or close relation who can provide additional security. My advice is to speak to a mortgage adviser and ask them what they can offer. Although trawling websites will often find you the best headline rate, there can be a host of other costs and considerations.

Further positive news for first time buyers can be found in Halifax’s house price index, which recorded a fall of 0.4% in May, following a decline of 0.1% in April. Commenting on the decrease, Martin Ellis, the firm’s housing economist, said, “The mixed pattern of monthly price rises and falls so far this year is consistent with a slowing market and is in line with our view that house prices will be flat during 2010 as a whole.”

Despite these encouraging signs, nobody can predict what will happen in the future. When you take your first step onto the property ladder, you should make sure you have considered how you will cope if things don’t stay as they are.

Again, I would urge you to speak to someone who knows what they’re talking about. A mortgage adviser will guide you through the whole home buying process which will include advice on what you need to consider when you commit to buying a home. They will also let you know whether you could still afford your mortgage payments if interest rates rise and provide advice on insurances to help protect you against the nasty things the future has a tendency to throw at us, such as ill health and redundancy.