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FTB before brexit

We're first time buyers, had an offer accepted on a house and accepted a mortgage offer. Already instructed solicitors etc. so we're quite far through the purchase. Ive recently heard about house prices crashing after brexit however we are buying in a nice area for £97,500 and plan to stay there as long as possible. We only have a 5% deposit so we're trying to lock down the low interest rates in a 5 year fixed rate. I worry about interest rates going up if the pound drops and we end up with unmanageable monthly payments. HELP!
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Comments

  • chanz4
    chanz4 Posts: 11,050 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Xmas Saver!
    Know one knows, and more than like house prices go up as demand will go down..but that's my view
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    If you get a 5yr fixed rate mortgage, then you don't have to worry about interest rates rising until 2024.

    It'd be nice to think that the whole brexit saga had come to some sort of conclusion by then. If it hasn't, then it's entirely possible that interest rates at the end of the fixed period will be the least of your woes, since you've got to find the money for 60 monthly payments between now and then...

    chanz4 wrote: »
    ...more than like house prices go up as demand will go down...
    No, that's not how supply and demand affects price...
  • babyblade41
    babyblade41 Posts: 3,953 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Just get on the ladder , no use worrying about Brexit or any other thing that may or may not affect the next 5 years especially as you appear to be committed to this purchase.

    You could pull out and all your fears don't come to fruition, then what ??

    Where will you stay if you decide not to go through with it ? will rent go up, down move to the front, centre middle, back ??
  • Comms69
    Comms69 Posts: 14,229 Forumite
    10,000 Posts Third Anniversary Name Dropper
    chanz4 wrote: »
    Know one knows, and more than like house prices go up as demand will go down..but that's my view



    Uhm.


    Higher demand, more competition for limited resources (property in this instance) prices go up....


    And vice versa
  • hazyjo
    hazyjo Posts: 15,474 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Search this forum for 'Brexit'. So many buyers with the same dilemma. you'll find lots of opinions. However, remember they are just that...
    2024 wins: *must start comping again!*
  • manuski
    manuski Posts: 101 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    I would wait. If a deal is reached prices will not spike all of a sudden, and if no deal is the outcome (currently about a 30% chance) then prices will fall 10% at least. Many people on here saying, why pause your life for brexit etc make it sound like we are talking years more of uncertainty, we should have a very good idea of what is happening in the next month.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    manuski wrote: »
    we should have a very good idea of what is happening in the next month.
    That's what we thought two months ago.
  • CarrieVS
    CarrieVS Posts: 205 Forumite
    Fourth Anniversary 100 Posts Combo Breaker
    At least you know about Brexit in advance and can prepare for it - you're trying to get a five year fix (I'm doing the same) to insure yourself against instability. This might not be the best time to get into property as an investment, but you mean to stay long-term and I presume you want a home, more than a financial asset. Then, you can hope that Brexit will be mostly "over" by the time you want to sell.

    What if you put your plans for your life on hold for several years until the Brexit situation has stabilised, and then something else rears its head (Swathe of new regulations? Scottish independence? WWIII?) How long will you wait that time?

    What if you wait until everything seems rosy and then we get another unforeseen crash like a decade ago? Ultimately, if you want to be totally risk-free, don't buy a house, whatever the circumstances.
  • manuski
    manuski Posts: 101 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    davidmcn wrote: »
    That's what we thought two months ago.

    Very true! However, legally, unless something happens in the next 6 weeks we leave without a deal. So, no more kicking the can down the road, we are gonna get a deal, an extension, an election or no deal in the next few weeks.
  • KatieDee
    KatieDee Posts: 709 Forumite
    Eighth Anniversary 500 Posts Combo Breaker
    If you want to buy a home rather than an investment, I see no harm in purchasing property now. The alternative is that you continue to rent, which is far less risk but also slightly less secure in most cases. Not to mention you're paying another person's mortgage (albeit, without massive unexpected bills when something goes wrong!).

    We decided to buy because our rent is incredibly high and we wanted a house to settle down in. We understand some of the risks that may come about due to Brexit but as others have said, it's all opinion and speculation.

    If house prices do fall and there is another market crash then we won't be happy, but our mortgage is still much lower than our rent at the moment and we plan to stay in our new home for a few years at least, probably long enough for the market to turn yet again. We're also moving to a popular area where few properties go up for sale, so demand is relatively high.

    I think in terms of purchasing family home, it's worth doing regardless of Brexit. I wouldn't want to purchase a new build with a premium stuck on it, or a luxury flat in the city, but I think your average property seems to be a relatively safe bet, providing you need somewhere to live anyway.

    I should add, I have no real knowledge on the subject and this is based on my very limited opinion :D
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