- Salli Anstey
As Brexit negotiations push towards a planned leave date of 29 March 2019, is the uncertainty of what will happen after this date affecting our considerations on home purchases and sales? More importantly, are we right to be worried?
Recent statistics certainly clarify that some parts of the market have become sensitive to Brexit developments. UK Finance data has revealed that in the month of August, in comparison to the same month last year, overall gross mortgage lending fell by 1.2%, alongside a drop in the number of house purchases of 4.3%. However, further reports show that over the same period the number of remortgages increased by 9.2%, as many homeowners chose to take advantage of competitive fixed rates, protecting themselves from possible further interest rate rises.
So, if the market jitters are causing parts of the nation to hold back on buying and selling their properties, should this be something that needs to directly influence our own plans?
The BBC’s favourite property expert and commentator, Henry Pryor interestingly had this to say within his recent editorial – ’What’s really happening to the housing market?’:
“Where might things go from here? Well, clearly selling today is much harder than buying something. I expect this trend to continue through the second half of the year with the market stiffening in Q4 this year and Q1 next year ahead of our actual divorce on March 29th. There may be nothing to worry about but how many people are going to make what, for most, will be their most expensive purchase ahead of Brexit, and not feel that it may be better to put it off until June 2019? Death, debt and divorce will continue to drive the supply side in the meantime so anyone brave enough to buy later this year, I think, will find they have the market to themselves”
At Private Wealth Mortgages, we say: When it comes to a decision that is largely dependent on factors personal to your own circumstances, consider, but don’t be influenced by the media. The right choice for you as a homeowner or would-be buyer will be based on your thoughts, concerns and plans over the next few years. Many of our clients seem unclear as to why they feel uncertain about Brexit thus are holding off with their own plans. Often breaking these concerns down and uncovering what they really are about and applying options helps immensely.
Nobody knows what’s going to happen post Brexit. We would advise considering potential rate rises and how far you can stretch to, as well as thinking about the reasons you are buying or selling right now and how long you will potentially be in a new property.
Our team of expert mortgage advisers have a combined 30 years of experience in the whole of the mortgage market and are happy to provide a free, no obligation chat about your concerns on the current market conditions and your unique plans. We will talk through and highlight pros and cons of staying in your own property, moving costs vs renting costs, moving up the ladder or indeed getting on it – so helping you consider all the viable options. We will highlight specifics based on your personal circumstances, such as how secure your employment is and your current and future lifestyle plans, present all the options available to you and advise you on the best way forward.