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Offer accepted on house
Comments
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If you do face any challenges get advice from professionals, it would be useful to get advice from people who have extensive property knowledge and understand various economic conditions......
Or, as no one, including these clued-up professionals, really knows what will happen in this unique situation, you could simply consult the reassuring pages of the Domesday Book:
House prices double on average every 7 to 10 years according to research and records from the doomsday book.0 -
With only a 5%deposit you are massively risking negative equity, and with only a 2 year fix, how can you be sure you will find a lender with any half decent interest rate?
You need to negotiate a price reduction and use this to reduce your LTV and therefore risk.
Best of luck!0 -
To BuyHi,
Unfortunately the outcome of the referendum has left us in a difficult situation - do we proceed or do we withdraw our offer?
I'm trying to work out what's best for us and any advice would be greatly welcome. We plan on being in the house for 8+ years.
Negatives
1. The mortgage is a two year fixed term. This means when the two years is up it will coincide with us leaving the eu and could prove an issue for the remortgage.
2. The house prices will likely drop, although it's hard to know by how much, but we do not want to be in negative equity.
Positives
1. The mortgage is a 5% deposit, it's unlikely we would be able to get this again if the house market crashes.
2. The house would be a good investment (in today's money) and allows us to grow into it.
3. There is a lot of demand for this size of houses in our area (3 bed and able to extend to make it 4 bed), so even though house prices may fall, supply still outstrips demand, which makes me more inclined to proceed with the purchase.
I know there is no "crystal ball", but as I'm new to this it would useful to hear other people opinions.
Thanks for any replies,
Ben
If you are going to stay for 8+ years go ahead.
Suggest you consider a 5 year fix. That's what I'm doing.0
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