House moves/prices and the Leave vote

[Batteriesallgone]

Can we talk about this? We're meant to be moving house in a month or less. Mortgages etc all arranged but exchange date yet to be set. Should we pull out? I'm terrified of negative equity. We're supposed to be upgrading so we'd have a better shot of paying of the mortgage if we stayed were we are (borrowing an additional £100k to move).

What is everyone else doing who is in the middle of house sale/purchase?

I'm probably in minority but I'm determined to sell my house regardless. I'm gutted that the house we had our hearts set on will now not materialise as they were moving abroad.

We will probably go for more of a sideways/ smaller step up the property ladder ( we were going to upgrade significantly) due to fear of rising interest rates.

Of course there is the issue of housing stock if people are put off selling. However, I think many people with bigger mortgages will now panic sell.

In fact, my EA rang at 9.30 am and booked a viewing at my house with someone who has decided today to sell up.

I am gutted about the ref, and I think the impact on the market will be complex.

By bigger mortgages, I mean people who are stretched to the limit so 'bigger than they can really afford' and more expensive homes where the fall can be greater.

No point panic selling as no one will want to buy.

I do!

Haha ok well maybe some!

We are exchanging today, we are at the bottom of the chain so feel a bit sick waiting to hear if everything is ok. I just want my new house, I have been waiting so long. The recession trapped us in a 2 bed terrace with 2 children, we finally we're in a position to move this time last year, accepted an offer in Jan and had our offer accepted in the same week, had a nightmare with solicitors and others in the chain messing around and now this! So close yet still so far.

It is an uncertain time. If you're moving for the long term go ahead. But don't pay an inflated price and don't overstretch yourself. The bubble in London and surrounding areas was bound to burst sooner or later. If prices in your area have shot up over the last year or so then I'd think twice about making a move now. And certainly wouldn't tie myself into a huge mortgage.

Good luck snake. Such a tense time.

Viv, I agree.

Viv - how would you judge overstretching yourself out of interest? A mortgage you could afford at 6%, 9%, 15%... A mortgage for more than 80% of the value? 70%? 50%?

I'm trying to weigh up how close we are to being stretched

I'd look at it simply. How much do you earn combined? You are over stretching yourself as soon as your mortgage and bills outweigh your earnings (which I know is obvious) use an online calculator to see how much rising interest rates would effect your monthly payments. If you can weather the storm at a high interest rate then I'd still take the risk.

I think I'd weigh up how much you earned betwen you. Take off all expenses (except mortgage) and see how much you've got left. And how much of a rise in mortgage rates you can take. And if your pay is likely to increase in future. And if anything is likely to change in your circumstances.. I don't think a one size fits all. Because some people have things they can cut back on such as going out and nice holidays. Others can't even afford these now so don't have much leeway.

But looks like interest rates aren't going up because of all this but who knows. If I was buying a great house in a good area I might take the risk. If an over priced house in a not so great area then I'd stay put. I can't see that the events of the last 24 hours will put house prices up. More likely the other way round. Hope things turn out well.

We can definitely afford the new mortgage at 7% rates. Probably at 8%. Above that we'd have to sell.

I've only bought and sold since 2008 so worry I have some complacency about interest rates and that 8% isn't actually that high, especially if house prices fall so our equity gets eaten into.

Also I'm not sure any buyer ever realises the amount they are paying is overpriced do they...how would you know?

I just wondering what others consider a feasible high interest rate. I know banks check affordability against 7% which is an indication I guess

We were planning on staying out until next spring at least after awful failed move that fell through last year just before we had DS. BUT this week a house that ticks all our boxes came on in our first choice area. As we HAVE to move within a few years (shool catchment, space and need to cash in to pay off some of the mortgage as I'll only be earning part time wages minus childcare etc) and it's been really hard to find what we want we thought maybe we'd take the plunge this year so we've got a viewing tomorrow.

Really uncertain now....will be hard to know what to offer for it, and worried that between that and ours selling (won't put ours on market unless we offer as historically ours has always sold crazily easily) prices will fall and we'll pay over the odds for the new house.

People keep telling me that if we are buying AND selling it doesn't much matter what the prices do as it stays in sync BUT we need to pay off a good chunk of the mortgage so we need the market to be as high as possible as the largest absolute figures mean a bigger lump sum to put towards the mortgage.

So maybe an actual incentive to move now before the drop.....

One thing I do know for certain is that you want to downsize when prices are going up, and upsize when prices are falling, due to the way the market contracts (more movement at the top than the bottom). So if you are wanting to free up cash then yeah get your skates on! Also Spring is when prices are highest so you want to catch the tail end of that

I think waiting until next spring would be too risky and agree that getting your skates on for the spring/summer market is key.

Martin Lewis video at the bottom of this page.
www.moneysavingexpert.com/news/family/2016/06/martins-reaction-to-brexit