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Original poster

House move Brexit cold feet?

27 replies

Longqueue · 06/08/2019 07:14

Hi me again (of the solar panel chaos - all resolved). Just wondering if any of you house movers are starting to get second thoughts with Brexit looming? We’ve been all agreed price wise since April and now things are starting to get me jittery. It might be that there is work needed to the house - it was meant to be quick and no chain either side of hours but that changed a few weeks in and now is a big chain and almost ready but not quite. The house is big and expensive and needs work. It’s currently all affordable (mortgage 22% of income, we have funds for the work) but I’m worrying what if? I don’t think there is an answer, but I hate what’s going on

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DaphneduM · 06/08/2019 08:26

Totally understand your concerns here Longqueue - we all hate what's going on, it makes you feel powerless. However, if you plan to stay in your house for a long-ish time, I would say go ahead. Take back that power for yourself. While there are reports of a property slowdown in some areas, in others things are quite buoyant. Maybe also examine your reasons for your move? We have been in your position early spring - but keen to move for several reasons - to be nearer our daughter and our new grandchild - and a slight downshift from a large period cottage and garden to a more manageable new-ish four bed detached near all facilities with a small garden. I'm sat here typing this in my beautiful (not completely furnished yet) sitting room and couldn't be happier! Our sale and purchase took five months from the end of February. I don't think you want to put your life on hold because of Brexit, if you're confident you have funds and can afford it I personally would go for it.

ClareIsland · 06/08/2019 08:43

If you are a FTB and can stomach renting and the costs of renting for a couple of more years then maybe hang back. If you are selling and want go get on with your life then any Brexit impact will likely be the same in the house you are selling as the one you are buying .... so neutral.

However if any of your jobs are at real risk and you are stretching yourself without contingency then I would think again ...,

Original poster

Longqueue · 06/08/2019 08:54

No, not a FTB - moving up from 4 bed terrace to 5 bed detached in same area (school catchment), adding another £225k price wise, adding another £300k to the mortgage and another £300k to value in terms of a completed house. Which is all fine in the status quo. Jobs - well, as secure as anyone I guess?

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Original poster

Longqueue · 06/08/2019 08:55

Adding £500/month to mortgage payment, but losing a £500/month Nursery bill next autumn

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ClareIsland · 06/08/2019 09:20

Do you mean that it would be £300K extra mortgage for increase in house cost and renovations? Have you accurately costed works (+contingency) as trades are currently v expensive and likely more so after Brexit due to shortage of skills.

Does the £500 uplift from nursery account for before and after school care, school holiday cover (if you need it) and clubs etc?

Sounds like a forever home in your preferred school catchment - so if you are there 5-10 years any blips should straighten out.

Original poster

Longqueue · 06/08/2019 09:24

Mortgage uplift includes renovations costed at April this year. In current climate spend would even out with anticipated house value once modernised. House is actually liveable if a bit 80s in terms of decor. Mortgage ~50% of house current value

Childcare costs are not included but term time childcare is not needed (except the occasional ad-hoc breakfast club, £10/month on average). Holiday care is needed but will be paid from childcare voucher.

yes house would be 5-10 years minimum, possibly forever

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ClareIsland · 06/08/2019 09:35

Sounds like you are well thought through and there is plenty of slack? If you love it, want it, need it just go for it!

Original poster

Longqueue · 06/08/2019 09:44

Contingency comes from income - we are in a position to make a £3k+ overpayment on the mortgage at the moment (I know, I'm not living in the real world!). And the work could be staged (think new kitchens, bathrooms, decor, flooring).

there is plenty of slack at the moment. but maybe not in the future?

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Original poster

Longqueue · 06/08/2019 09:44

(£3k+/month)

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StayGoGoStay · 06/08/2019 15:00

Having had two buyers pull out on us recently, don't be the a'hole who pulls out for no real reason/ just because Brexit has put the willies up you. Sounds like it's not a particularly significant financial risk for you to buy this house. One thing we know for certain is that we have no idea how Brexit will go/ the economic impact. However, life goes on, even with tossers like Boris Johnson determined to drive us off the edge of a cliff.

ClareIsland · 06/08/2019 15:20

One thing we know for certain is that we have no idea how Brexit will go/ the economic impact.

Not true. Every single economic forecast is negative - it’s just the scale of it that is uncertain.

Original poster

Longqueue · 06/08/2019 15:31

I don't really appreciate your tone @StayGoGoStay - I think the potential to lose a ton of money (in the short term) and risk family security is a big reason to consider carefully. @ClareIsland has it right, the impact will almost certainly be negative - how negative we don't know. It could be fine, it could be very much not fine, even for people like us who are currently very comfortable. I think I'd feel more relaxed if the house didn't need quite so much work, but all of the houses that we would be interested in in our area are the kind that have stayed in the same family for 30+ years and need some attention.

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tomboytown · 06/08/2019 15:43

What exactly are you worried about?
Mortgage payments?
Your jobs?
Affordability of work that needs doing?
The house value?

Your job and affordability sound fine

You'll always find workmen

If it's your forever house, does it matter if the value drops?

Original poster

Longqueue · 06/08/2019 15:46

Thanks @tomboytown good to pinpoint the angst - mostly the value of the £ and whether work to the house will be affordable in the event of a no deal Brexit. We were meant to be in before the end of July so could have got a big chunk of work done/at least started with a bit of a push. So yeah, just that really, and also the bigger existential worries of maybe not having a job in 3 years, though I don't think we are more at risk than others especially on that front...

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StayGoGoStay · 06/08/2019 15:49

Life is full of risks, isn't it? This sounds like a pretty small one to me given your financial margins. If you were paying 50+% of income on mortgage and didn't have the capacity to overpay, etc, then I'd be nervous too. But it sounds like you've got quite a big financial cushion to weather the blows of Brexit. Plus you're planning to stay there long-term, so can ride out any post-Brexit 'adjustments' to the property market.

And sorry you 'don't like my tone' , but people who pull out of house purchases/sales at the last minute for nebulous reasons like this are a-holes. You knew Brexit was coming when you first entered into this process in April. You need to ask yourself what's changed for you to make pulling out, and screwing over everyone else in your chain, a reasonable, logical decision to make.

Original poster

Longqueue · 06/08/2019 15:54

I don't think I'm an a-hole, this whole thing has dragged and dragged because our vendors/the agents lied to us about it being chain free. While Brexit has always been there, we haven't always had mad-man BoJo in charge of the ship!

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madcatladyforever · 06/08/2019 15:58

I recall last time the economy went to shit loans of all kinds and credit cards were being refused all over the place.
I'd get it done quick before mortgages start getting refused to people in the chain.

Original poster

Longqueue · 06/08/2019 16:05

@madcatladyforever - yes, and what if in x years' time (at the end of the chosen deal) mortgages are still hard to get ...? I know this is always a concern but it feels very real and pressing in a way it hasn't until now. Last time we bought was in 2011, which was during the Greek Euro chaos which was also stressful - that worked out but this feels different somehow...

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Mildura · 06/08/2019 17:03

what if in x years' time (at the end of the chosen deal) mortgages are still hard to get ...?

There are 10year fixed deals available at the moment for 2.35%.

house would be 5-10 years minimum, possibly forever

Well, 5 years wouldn't be a huge amount of time, and difficult to predict what will occur during the next 5 years, but 10years to forever is pretty significant time period.

It's natural to feel some uncertainty when it comes to a big lfe decision, such as moving house. Sounds like you are in a pretty comfortable financial position at the moment.

It's good to remember that the value of your house is only really relevant when you need to sell it.

ClareIsland · 06/08/2019 18:51

I think that you should only worry about the extra £300K you are adding rather than the total value as you are not exiting the market now and renting - so even if you stay where you are the house you are in will loose value if all goes pear shaped.

Would the £300K gap always be the same? Or if it tanked 10% could you weather the £30k loss if you had to sell unexpectedly?

Otherwise sounds like you are going into it with your eyes wide open.

The political situation has darkened and changed considerably since you started out in April - we are now facing the v real prospect of a no deal Brexit. If this impacts you personally or causes you concern you have every right to reconsider and pull out. You have no obligation to anyone and it would be in fact irresponsible to but your family under unnecessary financial pressure.

Sounds to me it is a nice to do 4 to 5 bed in same area - not FTB, relocation or need the space immediately.

Original poster

Longqueue · 06/08/2019 19:58

Thanks @ClareIsland that’s a really interesting way to think about it.

The gap in terms of space offers much better financial return. Increasing by 50% of the value of our current house doubles the sq ft and triples the garden.

And yes. Much more menacing politically than 4 months ago

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Original poster

Longqueue · 06/08/2019 19:59

And yes, it’s not an essential move but it’s a once in a lifetime house. Political and economical landscape aside we will probably not be in a better position

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ClareIsland · 06/08/2019 21:46

Go for it then - important to live your life positively. Good luck

Neet90 · 07/08/2019 01:00

We are in the process of moving, mot exchanged yet and I'm second guessing everything. From what I read interest rates may go up after brexit so perhaps it's better to move now while the mortgage rates are very low. I also read that if it's going to be a long term house, ie 5 years plus then things should level out. If you really like the house and can comfortably like it then go for it. If we end up chickening out I think my husband wants to get a new fixed rate mortgage done at our current house so we know where we stand for now, if we move later and interests rise a lot we can potentially port ours over and get a higher rate for the remainder we need to borrow.

Original poster

Longqueue · 07/08/2019 07:05

Hi @Neet90 - I remember you from the cellar issue. Did you get it resolved? I know some of it is just normal cold feet but it feels precarious at the moment.

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