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Re: Help Needed!!

Posted: Thu Nov 08, 2018 6:43 pm
by AnimusEradico
I'm not so sure you will see such a big drop in the housing market unless you live in London.
At the moment there's some uncertainty which is putting house buyers off, so there's potentially a small dip in the market which could be in a buyers favour (since people will always want/need to sell their houses but people are holding out buying) but once the Brexit position is known I don't think there will be an immediate impact to the housing market or interest rate.

The interest rates have been kept low and I believe there is only likely to be some very small increases over the next few years from what I've seen. Even in the worst situation i.e. a bad brexit deal, I don't think you'll see an immediate impact to the housing market, it would likely take years to filter through our economy, we're not likely to see mass unemployment or severe salary reductions all over the country.

Assuming you put in a 10% deposit, you would need the value of your property to fall by more than 10% to bring it into negative equity and make it unattractive to mortgage companies. The demand for housing at the moment far outweighs the availability; there would need to be a significant impact to our economy to effect the housing market that much that quickly. Mortgage companies will also be taking this into account when valuing your property.

The last Major crash 10 years ago was as a result of lenders allowing people to borrow more than they could afford etc. It's now much tougher to get a mortgage if you can't afford one.

It's up to you if you think you'll be happy in that home, but it's worth considering if you've got a good price for it and if you will have any problems selling it when you want to move - the associated costs to move at the moment mean you really don't want to be moving too often and as I said, if we'll see an impact from Brexit it may take a couple of years to really effect us so you probably don't want to be moving then.

You may want to be paying your mortgage off rather than someone else's if you're renting now, I wouldn't necessarily be put off by brexit but I would consider if that's the best home you can get for your money & if you'll be happy there for some time and research as much as possible.

No one really knows what will happen, and what I've said is what I've gathered myself (there's a lot of conflicting info out there) but if you did wait, you could then be buying in a sellers market since many other people are holding on too.. I ran through all this myself and decided now was the right time for me - but I'm planning on staying in this house for at least 10 years!

Having said all that, in some other countries the norm is to rent, us Brits seem to like owning our own homes.