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My partner and I are quite worried. We have scrimped and saved for a 15% deposit on a house in London, we are nearly ready to exchange contracts. We are not high earners. I myself never wanted to live in London, but her entire family live here and she is very family orientated, it would break her heart to move away despite the advantages in us doing so. If Brexit occurs, I can understand it could lower prices for some time and even plunge us into negative equity. I know there is a case for Brexit to mean both higher and even lower interest rates. We need to plow on with the purchase as its the best house we have found for the money and the prices have gone up vastly since our offer was accepted (Dagenham areas prices have been going up £600 a day in recently months). If we wait any longer for the referendum we could lose the house and if that happens and we remain, house prices will have risen beyond us getting a 3 bed house. Any advice you guys can give us? I have tried getting her to move away from London but I don't think our relationship would survive it. (She refuses to have kids without her family nearby and I desperately want kids!) We have gone for a 5 years fixed mortgage which may help us ride out the storm in time for prices to recover and interest rates to normalize. Is there anything more we can do? (Politically I am left wing, I would love to be able to leave the EU to join or form a more socialist union. But I do not see it happening until a left wing government exists here, my opinion is to remain until we get a left wing government, then leave).
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Jun 9, 2016 10:38
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| # ? Apr 28, 2024 00:46 |
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since many goons are US based, you might want to clarify the amortization period of your 5 year loan. The idea of an amortization period that differs from your mortgage length is foreign in the US.
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Jun 10, 2016 01:33
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If I were you I would exchange now with a view to complete in more than the standard two weeks just to give you the option of pulling out (at a cost). We basically don't know what would happen to the economy or the house prices if it does happen, but this would give you the option there just in case.
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Jun 10, 2016 12:24
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why on earth are you buying a house when you can hardly afford it and you have a completely different life plan to your partner
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Jun 10, 2016 14:13
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^ what they said, ALSO house prices in London are known to be artificially high due to overseas investment and due for a correction any day, so you are literally buying a house when it will be most expensive. If you are definitely going ahead then are you planning on moving or selling your house at any point soon? If not, then who gives a poo poo about negative equity? if you are planning on moving soon then buying a house at this time is really not a good idea. MikeCrotch fucked around with this message at 17:06 on Jun 10, 2016 |
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Jun 10, 2016 16:54
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Asomodai posted:We have gone for a 5 years fixed mortgage which may help us ride out the storm in time for prices to recover and interest rates to normalize. Is there anything more we can do? 5 years seems very short. Over here less than 10 years is rare and with interest rates what they are right now you might as well go for 20. Is this not available in the UK? With 20 years fixed interest rate you can just not care that your house is underwater as long as you can keep making the payments. Personally i would never buy a house in a city like London because 600 pounds per day increase just screams BUBBLE in bold underlined impact 72 point ($315k price increase per year, really?). Being house poor would suck. Houses cost so much money to maintain, have you included this in your calculations? Or are you assuming you will be able to take out a loan against the increased value to do maintenance? Then again maybe housing prices in London will keep going up and getting in now will make you rich over the next decade, who knows really.
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Jun 10, 2016 18:31
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| # ? Apr 28, 2024 00:46 |
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Trying to time the market is a fools game. Much like having children.
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Jun 10, 2016 19:20
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