Brexit - affecting mortgage amount

donose101

Just wondering if anyone else has noticed a lower amount that mortgage companies are offering post brexit? I went on a mortgage affordability calculator today and got a figure 5% lower with the same company that I tried pre-brexit. Could it be something other than Brexit that is causing this? FYI - have the same salary and other details so it's not anything to do with my own circumstances.

Crashy_Time

They obviously expect prices to drop, and prices will drop if mortgage limits drop.

economic

Crashy_Time wrote: »

They obviously expect prices to drop, and prices will drop if mortgage limits drop.

yep vicious circle.

hey crashy - i think you maybe right now. prices in london are surely to drop. have contacted a number of estate agents and some buyers are pulling out and theres a lot of nervousness.

i do think prices can only go down from here for the next few years at least. if i went back i probably wouldnt have bought, however what si done is done and i like my place and am here for the long term so am not too bothered. glad i dont own more!

Crashy_Time

economic wrote: »

yep vicious circle.

hey crashy - i think you maybe right now. prices in london are surely to drop. have contacted a number of estate agents and some buyers are pulling out and theres a lot of nervousness.

i do think prices can only go down from here for the next few years at least. if i went back i probably wouldnt have bought, however what si done is done and i like my place and am here for the long term so am not too bothered. glad i dont own more!

You should have waited for the referendum result before planning to buy back in.

economic

Crashy_Time wrote: »

You should have waited for the referendum result before planning to buy back in.

maybe i should have. however no one knows what prices will do for sure but i do think they will fall. by how much - probably not as much as you think. and it will be slow taking years for the decline. i rather own then rent in this scenario. specially with low rates.

Crashy_Time

economic wrote: »

maybe i should have. however no one knows what prices will do for sure but i do think they will fall. by how much - probably not as much as you think. and it will be slow taking years for the decline. i rather own then rent in this scenario. specially with low rates.

Ideal situation for me would be a slow(ish), not too slow, grind down in prices, with rates held at silly lows with QE going on to keep things ticking over. We have had the last two for a while, I think instability in the EZ will see house prices start to fall. More likely though IMO is real volatility, property price correction, higher mortgage rates and maybe base rate hiked due to currency crisis. I`m in Scotland, the Aberdeen meltdown and the threat of yet another referendum is going to do for prices up here eventually anyway, with or without a rate hike. I believe Landlords here will see Brexit as a reason to hang on to long term good tenants, maybe dropping rents in some cases to do so.

System

donose101 wrote: »

Just wondering if anyone else has noticed a lower amount that mortgage companies are offering post brexit? I went on a mortgage affordability calculator today and got a figure 5% lower with the same company that I tried pre-brexit. Could it be something other than Brexit that is causing this? FYI - have the same salary and other details so it's not anything to do with my own circumstances.

I wouldn't worry too much. I'm fairly obsessive when it comes to my financial planning, and I have a spreadsheet listing the amount each of those mortgage calculators tells me I could potentially borrow on my salary. I've just run them all through again post-referendum. The following calculators show that I could borrow the same amount as they were showing before Thursday:

• Co-Op
• Halifax
• Lloyds
• HSBC
• Natwest
• RBS
• Clydesdale
• First Direct
• Santander
• Tesco

The following show that I could borrow slightly less:

• TSB

I think it's fair to say you were just surprisingly unlucky with your choice of calculator.