Would you pull out of exchanging due to covid-19?

[SmoothAvocado]

I'm mid-20s, buying alone, first-time buyer, have saved up for years to be able to, looking at purchasing a victorian 3-bed terrace (not in a large city but has train station 5 mins walk away, a primary school 2 mins walk away, shops 10 mins walk away), got 10k off asking price and sorted out everything including surveyors etc. and had opted for a 2 year fixed deal (35 year mortgage) with ~80% LTV.

Now, I'm considering moving to a 5 year deal in case of negative equity risk when remortgaging due to covid still affecting house prices 2 years on (meaning my mortgage repayments per month could go up by a lot). I'm hearing of a LOT of people thinking of or actually pulling out due to the uncertainty of the impact of coronavirus.

I'm thinking that if job/income etc stays stable, is there any valid reason for pulling out related to covid-19?

Plus, otherwise, I'd be continuing to rent which is money down the drain and this way, I could rent out any spare rooms if I owned the place. Also, if house prices really go down, less people would put their house up for sale so less to pick from, and a lot of banks are pulling their mortgage products off the shelf as it were so it seems like waiting would mean potentially waiting a long time. Besides, it would be a global issue so every homeowner (including the millions who bought just before covid-19) will be in the same boat.

I don't know if I'm just putting a positive spin on it to make me feel better as I am in two minds about this. Any advice, comments, etc. with consideration to my situation would be helpful. I know no one can tell me with any certainty what will or will not happen due to covid.

Thank you.

I have pulled out of the house I was buying. But mainly because I didn't love it and lockdown had highlighted the compromises it represented and that I don't want to make them any longer. But I'm in a good position financially as I have a large deposit from the house exh and I sold. I do worry there won't be much on the market for a while but it's the right thing for me to not proceed.

Do you love the house?

I would buy if I were selling a property and upsizing or relocating, but I wouldn’t buy currently as a first time buyer.

If you love the house I would go ahead, at the moment banks seem comfortable to lend and you could miss out on the house you really want otherwise.

I don't know where the OP lives but, generally, renting isn't a waste. Especially if it's for just another year to ride out the drop in the market before saving 10% on a property

But that 10% could literally be a year or so rent.

Our friends bought a house as FTBs during all this and it's been fine.

I would continue if it was me.

Yes I would exchange and carry on buying. It's just nervousness stopping you. There is always something going on to freak people out. We also exchanged a couple of weeks after Brexit. Our house has gone up in value a lot since then and never dropped despite all the doom mongers predictions.

Nobody really knows what’s going to happen to prices. Despite all you may read, even the so-called experts hardly ever have.

OP, speaking as one with decades of experience of property ups and downs, then as long as you do still like the house and are thinking long term, not just for a year or two, I’d think go ahead. As a pp has said, interest rates are very low at the moment, so it’s a good time to go for a 5 year fix.
Good luck.