Mortgage before brexit or wait?

[Adviceforhouse]

Hi all

Saw a similar post before but my circumstances are different so wanted some opinions.....

Live in a private rented house, have done for five years, man who owns it is lovely and has told us numerous times over the years he is happy to sell to us if we wish. We went to buy a few years ago but at the time couldn’t get a mortgage for the price it was valued at, but now circumstances have changed and we are in a position to get a mortgage and put about a 25% deposit down. However, I don’t know when to approach again and get the house valued, now or after brexit. It is a nice home and I do see us staying here for 10+ years but I do feel at some point we MAY move elsewhere but certainly not anytime soon (down the road from our kids school who is only in reception so years of school left!)
We have searched round the area for two years now but have found nothing cheaper that we like or comes close to what this house has.

I know it’s a hard question but any advice? Thanks x

House prices definitely won't go up after brexit. They'll either drop or stay the same I imagine. But even if they do drop interest rates could rise... To be honest I'd buy it as the only certainty is that you're currently wasting money on rent.

No one can really say. Interest rates might go up, which will make mortgages more expensive and difficult to get, but house prices might fall, which might offset it. To what degree and even if it'll happen, no one really knows. Just another fun part of the clusterfuck that is Brexit.

If it's somewhere you're going to live for a decent length of time I'd be inclined to forge ahead now, particularly if a potential interest rate rise would make your mortgage difficult to get or unaffordable.

Buy it now. Fixed rate. Longer term 5 years ish. But do get good advice as well

Thank you!!

NoThankyouHun is absolutely right. As a former mortgage underwriter I'd be doing what she suggests. Longest fixed rate deal you can find with a qualified Mortgage Adviser.

I’d buy it. You’ll be in that house for 10+ years. Better the money goes towards your future, than money into your landlords future. Secure it now, on a long deal mortgage rate.

Bank of England Governor Mark Carney said house prices could fall by a third if there is a no deal Brexit and interest rates could rise to around 5%. This is a forecast though and it's accuracy is not guaranteed. If you accept what he says, then I suppose you could get a better fixed rate deal now fixed for 2 years or more. Or you could decide not to buy just now if you expect prices to fall and you can get a better deal later on. I don't know how quickly he expects prices to fall. Am not sure if there would be a credit crunch like there was with the 2008 crash where the banks made it much harder to borrow money

Shockingly I am a mortgage broker! Take that bit of advice for free. In all seriousness get proper advice.