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Brexit and buying a house
greyroofer
Posts: 68 Forumite
I'm a FTB and will be putting my deposit on a house in March /April. I'm using HTB Equity Loan as it's a real help in securing a good rate and a step on the ladder.
Since Brexit, I'm wary of exchanging and then having to wait a few months before completion due to build time.
What happens if the value drops between exchange and completion and I cannot get a mortgage at the exchange price? If the bank thinks it is worth less than the exchange value, and I have signed a contract at the higher value, will I lose my deposit the has taken so long to save?
I'm not sure it is worth it at the moment?
Since Brexit, I'm wary of exchanging and then having to wait a few months before completion due to build time.
What happens if the value drops between exchange and completion and I cannot get a mortgage at the exchange price? If the bank thinks it is worth less than the exchange value, and I have signed a contract at the higher value, will I lose my deposit the has taken so long to save?
I'm not sure it is worth it at the moment?
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Comments
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If it wasn't Brexit it would be the UK employment figures, threats of interest rate rises, Trump, the Italian banks, toxic bank debt in Germany, yet another Italian government this week, whatever. There's always something.
You appear to be suffering from classing FTB nerves, but if you do actually think house prices will fall over the next year or two, and that overrides any savings you will make from living in rental, then dont buy.0 -
What happens if the value of the house increases, are you willing to pay extra out of charity?"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
greyroofer wrote: »What happens if the value drops between exchange and completion and I cannot get a mortgage at the exchange price?
Then (assuming you can't get the money from elsewhere by the completion date) you'll be in breach of contract.
You'll lose whatever your contract says you lose. That may be the contractual deposit (i.e. not "deposit" in the sense of the equity you're paying towards the price, which may be a higher amount).If the bank thinks it is worth less than the exchange value, and I have signed a contract at the higher value, will I lose my deposit the has taken so long to save?
When do you think it will be worth it? Nobody can predict when there definitely won't be an unexpected drop in house prices. But I think the market has already taken account of the Brexit vote and the continuing uncertainty about what/when anything further will happen - I'm not convinced Brexit can get much worse than it already is...I'm not sure it is worth it at the moment?0 -
You're buying a home, not an investment - unless you plan to move again in the next couple of years, what does it matter whether the value fluctuates a little? But if you're worried about the time between exchange and completion, don't buy a new build - buy something that's already been built. If you're worried about buying at all, then what are the alternatives - continue renting or living with parents? How do you feel about that?
Ultimately, would you rather pay your own mortgage, or someone else's?0 -
Best wait 2 years till we're out of Europe. Then give it another 18 months for things to settle down. So... 3.5, call it 4 years. Make it 5 just to be sure.
I'm sure prices then will be cheaper then by at least as much as the rent you'll have paid in the meantime.......0 -
Best wait 2 years till we're out of Europe. Then give it another 18 months for things to settle down. So... 3.5, call it 4 years. Make it 5 just to be sure.
I'm sure prices then will be cheaper then by at least as much as the rent you'll have paid in the meantime.......
It's probably best to wait until after the general election, and then we're likely to be close to another US election, so that might affect things, wise to wait and see what happens there.
I'd give it 8-10 years to be on the safe side.0 -
It's probably best to wait until after the general election, and then we're likely to be close to another US election, so that might affect things, wise to wait and see what happens there.
I'd give it 8-10 years to be on the safe side.
Everyone knows these things are cyclical, despite promises that 'this time it's different'. The key is getting in at the right time of the cycle, so it's prudent to observe one or two before pinpointing your key moment in the third. Play the long game, but be wary of structural realignment: 15-22 years minimum.0 -
So, in conclusion, the OP should definitely wait to purchase, using their pension TFLS
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Would the pension pass the lender's even stricter criteria in 2021? Where even a haircut reduces your affordability"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
Brexit really is the biggest red herring ever known to man....0
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