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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

to buy a house with Brexit looming?

28 replies

Milly848 · 16/12/2018 22:36

FTB here.

Have placed an offer on a house and things are moving along, but I've thrown a bit of a wobbly tonight after speaking to my father.

He reckons Brexit is going to cause disaster, and we should hold off buying as there could be a huge crash.

This has scared me. The fixed rate mortgage is 1.99% for five years, but if there's a crash and the house suddenly becomes worth 50% less than what we paid it would be catastrophic.

Does anyone have any sensible insight, is my dad right, should we hold off? We will lose money as we've paid for checks, but better than making a very very costly mistake.

OP posts:

Clearthinking · 16/12/2018 22:37

Not sure but in the same boat. We are going to hang back untill end of March to see what happens.

AntiHop · 16/12/2018 22:39

I'd buy it. No one knows what's going to happen in the future.

ShoesieQ · 16/12/2018 22:43

If we end of with a No Deal Brexit there's a really good chance your dad is right. However no-one has a clue as to just how likely that is to happen. So if it were me I'd do what the PP is planning ie wait and see.

ChangingStates · 16/12/2018 22:44

Same here, house hunting following divorce and can't really hang around as losing money on rent every month- am planning a 5 year fix to see me through brexit up & downs and hoping there's a deal to be had as market is slow. Also this should be my home for at least the next ten years so that also gives time for things to go crazy & come back up again. Good luck!

peachgreen · 16/12/2018 22:46

I wouldn't buy a house I was looking to sell in the near future. We bought something that could be our "forever home" if needs be.

ElainaElephant · 16/12/2018 22:51

Depends if you want the house.

If there is a house-price crash there's every chance that the market will stagnate a bit. Some people may well take their houses off the market until it recovers a bit, unless they have no option but to sell.

So you can wait and hope for a cheaper house - but it might not be the one you are currently in the market for.

Andallwaswell · 16/12/2018 22:54

We are in the same boat as you and due to exchange in the next few weeks. The way I look at it is the house value only matters when you are wanting to move and brexit could make the banks overly cautious and make mortgages more difficult to get.... although no one wants to immediately be in negative equity! We are carrying on regardless but hopefully it won’t be a disaster!

harriethoyle · 16/12/2018 22:58

I suspect mortgages may become more difficult to get and interest rates will rise if there's a no deal so from that perspective, you'd be better getting a long fix...

IgglePiggleWiggle · 16/12/2018 22:58

I'd wait...there's no telling what's going to happen if we crash out

StartingGrid · 16/12/2018 22:59

We've got a deposit in the bank but decided we're better off renting till after March... prices here are falling more than what we'd save in rent paid at the moment so we're half heartedly looking but expecring better value for money next year

explodingkitten · 16/12/2018 23:00

Depends, if you're planning to live there for 30+ years then it wouldn't stop me. If you're young and it's not fit to have a damily in or grow old in, then don't buy.

Itsear · 16/12/2018 23:02

This is going to drag on for years. If this house is a long term home (over 10years) I would go for it, although I have to admit that we are holding off on any house move because of brexit (but then we are in vulnerable jobs and there is no pressing reason to move it would only be for more space).

cestlavielife · 16/12/2018 23:02

Why would a drop be catastrophic?
How much is mortgage vs rental ?
You have to pay for a roof anyway
Or are you planning to buy and sell in next few years? If it s a studio flat or 1 bed that won't last your plans then don't buy
If it s a 3 bed huse you can stay until things stabilise?

VTechnophobe · 16/12/2018 23:07

We're buying at the moment. Got a great fixed mortgage rate as relatively low it % and plan to live in house for at least 15-20 years (until dcs are grown up) so didn't seem worth renting any longer no matter what happens with brexit.

VTechnophobe · 16/12/2018 23:08

*Ltv

IgglePiggleWiggle · 16/12/2018 23:11

It also depends on how "brexit sensitive" your jobs are. For us it would be daft as there simply may not be jobs for us if we crash out.

LellyMcKelly · 16/12/2018 23:30

The other thing to think about is whether your job will be secure enough to cover the mortgage. I work in a sector where our relationship with the EU is important (to the tune of £10 million a year, around a tenth of the income in my organisation) and if even half of that goes it will mean widespread redundancies. I’m about to start divorce proceedings and my ex (amicable) works in the same sector. We have no idea what to do at the minute.

canigetaliein · 16/12/2018 23:33

I’d go ahead of the property was a good price & allowed you to stay long term if. necessary.

Berniethefastestmilkwoman · 16/12/2018 23:40

I would wait. There is a very good chance that house prices will fall. Why pay substantially more for a house than you may have to in a few months or a year? Interest rates may rise. They may not. But that is unlikely to make as big a difference as a 40 percent reduction in house price will. I've been in negative equity because of a crash. It wasn't awful as when it came time for us to upgrade our house the houses on the next step up had also greatly reduced in price. But if I had known a crash was coming I would have waited 6 months and bought a house for much cheaper. You don't know a crash is coming but there is every reason to suspect houses may drop in value quite soon.

PeaQiwiComHequo · 16/12/2018 23:56

how stable are your employment situations in the event of the economy crashing? if you have your jobs and don't need to move then it doesn't matter too much if prices do drop. you keep paying your mortgage and you have a house and it still beats renting.

don't buy at the peak of your capacity - buy at a price where you feel you could afford monthly payments that are a big higher - and then overpay, so that when mortgage rates go up you don't mind it. our rate is 1.85% but we are paying the monthly amounts we would pay if rates went up to 5%, so we have a cushion against unwelcome changes.

seventhgonickname · 17/12/2018 00:10

Buy.If things go tits up and prices go down people will not sell,the market will stagnate,mortgages go up and probably rents too.
It is a home,fixed mortgage is good

HestiaParthenos · 17/12/2018 00:12

If you plan to live there and there's not much risk of not being to pay it, it doesn't really matter for how much money you could sell it, does it?

seventhgonickname · 17/12/2018 00:14

Sorry posted too soon.
If this is your home then no problem unless you are over stretched and that will not be an issue until your 5years are up.Chances are you will be paying less on your mortgage than you are in rent.
Prices only go down that if people are willing to sell at a loss,those are very few.

VTechnophobe · 17/12/2018 00:50

All these people who think Brexit inevitably means a house price crash so cheaper purchase price, what do you think will happen to mortgage rates and housing availability as people drop into negative equity and builders go out of business?

TVMakesSquareEyes · 17/12/2018 02:34

I think there will be a crash after brexit. Prices have already nosedived in the SE and will go further. However unless you're planning to sell in the next 5-10 years then it doesn't really matter if it goes into negative equity does it. Prices will go back up eventually, they always do.

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