14 Jul Brexit – Keep Calm and Carry On
In the wake of ‘Brexit’ we’re all sat here wondering what the impact of this is likely to be on the housing market and mortgage rates – the honest answer is we really don’t know.
There’s no doubt that there is going to be a considerable amount of uncertainty over the coming months and possibly even years but as to the impact of this, we’re venturing in to the unknown.
In the UK we’ve got used to looking at property as an investment and we mustn’t lose sight of the fact that a property purchase should primarily be seen as your home and the investment element as a secondary benefit. Particularly if you’re buying a new home to live in, the priority is finding the right place, at the right time that meets your needs and that the monthly mortgage payments are affordable. Prices will no doubt rise and fall during the time in your home, but as long as you’re not forced to sell in a dip, negative equity (in the worst case) shouldn’t pose a problem – even if it’s not a nice thought!
The beauty of the house buying process in the UK is that you’re not committed to your purchase right up until exchange of contracts at the end of the process. This gives you an opportunity to watch the market place over the coming weeks and months and muse over the best course of action. With a potential Bank of England base rate drop on the cards and low swap rates currently, you could be looking at lower repayments than first expected for your new purchase.