Buy now or wait till BREXIT

jimbog

Crashy_Time wrote: »

https://www.theguardian.com/money/2019/jan/20/brexit-gloom-property-mortgage-rates-cut

Thanks for the link. Interest rates falling still so it seems. Many predicted otherwise.

Finchy2018

We are FTBs. We just exchanged on a property.
We currently rent a nearly identical property and our mortgage is going to be £200 a month less than our current rent. We don't plan on moving again for at least 5 years, maybe longer so Brexit didn't really put us off, we discussed it and decided we wanted to own a place.

Maybe prices will come down, but that could happen at anytime.

Crashy_Time

jimbog wrote: »

Thanks for the link. Interest rates falling still so it seems. Many predicted otherwise.

From the link -

"Sykes says it is difficult to see further drops in the near future as the margins that banks are operating on are tight."


Interest rates "falling" is very different to some banks cutting mortgage interest rates, by a tiny amount, because there are no longer enough people out there who want mortgage debt (not at current house prices anyway) The rate that matters is the US rate, and they are raising, and when the inevitable happens in the EZ expect more volatility and rate rises IMO.

Crashy_Time

Finchy2018 wrote: »

We are FTBs. We just exchanged on a property.
We currently rent a nearly identical property and our mortgage is going to be £200 a month less than our current rent. We don't plan on moving again for at least 5 years, maybe longer so Brexit didn't really put us off, we discussed it and decided we wanted to own a place.

Maybe prices will come down, but that could happen at anytime.

Did you get a five year mortgage?

letsbetfair

Crashy_Time wrote: »

Did you get a five year mortgage?

I can't speak for that poster, but another way to mitigate the risk of rate rises is to get a 2yr fix and overpay/save a fair amount. That's my plan, and if rent is substantially less than than mortgage may be an option for others too ..

mpr87

I'm a first time buyer, We've got an offer out there but not agreed yet. We are looking at a 25% deposit and after discussions with a mortgage advisor I think we are looking to go for a 5 year fixed rate. Which atleast as far as mortgage payments are concerned would hopefully give us a bit of certainty/stability.



As far as house prices are concerned whilst I could be a little worried the house we are after is one that we intend to stay in long term so should house prices drop whilst it would be a bit annoying it wouldn't be the end of the world. I think the problem is no one really knows what is going to happen and i've seen house prices go up quote a bit and i can't really see them slumping massively any time soon because there is so much demand in the area i live.



were both living seperately at home with parents at the moment and don't really want to rent.

Finchy2018

We got a 2 year fix. With plans to over pay for those two years. We are also in a position where we have a substantial amount in savings should either of us lose our jobs (approx 2.5 years of our combined income) or wish to significantly reduce the ltv when the 2 years is up.

Crashy_Time

mpr87 wrote: »

I'm a first time buyer, We've got an offer out there but not agreed yet. We are looking at a 25% deposit and after discussions with a mortgage advisor I think we are looking to go for a 5 year fixed rate. Which atleast as far as mortgage payments are concerned would hopefully give us a bit of certainty/stability.



As far as house prices are concerned whilst I could be a little worried the house we are after is one that we intend to stay in long term so should house prices drop whilst it would be a bit annoying it wouldn't be the end of the world. I think the problem is no one really knows what is going to happen and i've seen house prices go up quote a bit and i can't really see them slumping massively any time soon because there is so much demand in the area i live.



were both living seperately at home with parents at the moment and don't really want to rent.

Really? You believe that it is demand that is holding prices up, not zero rates, HTB and a massive central bank bailout of the financial system? Mortgage approvals and sales transactions are way down across the general market so you must live in a real property hotspot? The loose credit experiment from about 2001 to the bust in 2008 isn`t likely to be repeated, neither is the scale of the bailout (US is now raising) and all that helping out Wall St and The City has done is bring in Trump, Brexit and the European "Populists", so I hope that people who have been braying about rising house prices (not you) can join the dots as we head towards a "No Deal" Brexit

MobileSaver

Crashy_Time wrote: »

You believe that it is demand that is holding prices up, not zero rates, HTB and a massive central bank bailout of the financial system?

When did we have zero rates?

The "massive central bank bailout" was over ten years ago...

Do you really, really believe it is not supply and demand holding prices up?

lisyloo

Really? You believe that it is demand that is holding prices up

I do.
Supply is contrained and people ar being outbid on properties - you can read about it here everyday.


I am not saying the market is booming (as I know you frequently take things out of context).
Supply is constrained and prices are set at the margins.
In most areas of the country (London excepted) prices are still rising even though we've have rising rates and brexit uncertainty.