About to buy first home - how will EU result affect us?

brit1234

People are wrong if they say house prices can not fall due to high demand, they did in 2008 and the demand was strong.

What stopped the price falls during the credit crunch was dropping interest rates to 0.5%, trillions of £ in QE, funding for lending, Help to buy and billions of £ coming from international investors into UK property to protect their money.

Its logical to suggest the cost of borrowing for mortgages will go up as a large proportion of the money is borrowed on the international money markets.The property bubble in central London has been falling the last 9 months with stamp duty changes. Further stamp duty changes and tax changes on buy to let are starting to have addition downward effect on prices.

It might be interest rates may have to go up to reduce the costs of imports as they get more expensive as the £ weakens.

I think it will be safe to say we will have short term house price falls. There may be things on the rocky horizon which cause bigger house price falls, However as we saw in the credit crunch we may see again extreme measures by government to try to pump up the housing bubble again and also the weak £ may trigger the return of foreign investors returning pushing up prices again.

Times for property prices will be very uncertain.

Callie810

Me and my boyfriend are in the same boat but have signed all the mortgage documents etc. We have a five year fixed rate so are hoping that that will protect us a little bit. This is probably me worrying too much but can Nationwide come back to use and renegade on the offer or change it due to this now even though we have signed? We haven't completed yet.

smile88egc

I think it would be foolish not to revise down your offer once more.

Negative equity is a very risky place to be in your first home. Unless your deposit is upwards of 25% it would not be a risk that I would take.

There's certainly not going to be a flood of other buyers rushing to snap up this house in the next weeks and months, so your position is a strong one.

Crashy_Time

SoSophie wrote: »

Hi all,

I know no one can give a definitive answer but I'm going to ask anyway! We had an offer accepted for a house; the valuation then valued at £10,000 below our offer. Yesterday, we put in a revised offer that matched the valuation and which meant the mortgage lender would still give us the money. Then the EU vote happened.

What on earth do we do now? Do we pull out in case house prices fall off a cliff (bearing in mind that this would screw over the vendors)? Do we press ahead and get it sewn up while we can still get a mortgage? Will the lenders already be thinking of withdrawing the mortgage offer? Aargh!

Any genuine advice much appreciated - please bear in mind that this is our whole life and savings we're talking about so I'd be grateful if people could give honest thoughts, not just post that we're screwed! :eek:

Thanks so much

If you want to put your whole life and savings on the line to help out a vendor, well go for it. The only sensible approach IMO is to withdraw and/or offer less later, after you have seen where this is going. My hope is that we are moving back to a world where people don`t sweat about chasing very average houses at silly prices, and I wouldn`t want to buy such a house just as that sinks in with the public. (No idea what your house is like BTW, just talking generally)

brit1234

Other threads are showing people pull out of deals. There were also those flats in slough where the developer would return the deposit if we voted brexit.

marksoton

martinsurrey wrote: »

please expand?

Because they should have planned.

I've zero time for those in finance weeping today. This is what happens when people have had enough.

chelseablue

brit1234 wrote: »

Other threads are showing people pull out of deals. There were also those flats in slough where the developer would return the deposit if we voted brexit.

Im from Slough and have not heard of this. Do you have link?


Not disputing you, I just want to be nosy

martinsurrey

marksoton wrote: »

Because they should have planned.

I've zero time for those in finance weeping today. This is what happens when people have had enough.

Trust me they have planned, the company is fine, they have other revenue streams other than new lending, just no new lending, you cant lend what isn't available, they cant magic money out of thin air.

"those in finance weeping today"
they are the people managing your pension fund, deciding if you get a mortgage, deciding what rate your savings earn.

If they weep, the tears fall on us all.

marksoton

martinsurrey wrote: »

Trust me they have planned, the company is fine, they have other revenue streams other than new lending, just no new lending, you cant lend what isn't available, they cant magic money out of thin air.

"those in finance weeping today"
they are the people managing your pension fund, deciding if you get a mortgage, deciding what rate your savings earn.

If they weep, the tears fall on us all.

Oh cry me a river.

If those same people didn't see this coming they're even bigger fools than i thought. What they did in 2008 hasn't been forgotten. And the EU was/is part of that.

The die has been cast, they need to knuckle under and start working in everyone's interests not just their own.

iantojones40

Just had a message from an ea friend, their phones have been ringing non-stop all morning with buyers withdrawing or reducing offers.