Brexit – what it means for buyers…
Our previous two blogs on how Brexit will affect tenants and landlords have seemed to be full of potential bad news: changes in legislation, rises in rent, negative equity, dropping house prices…
However, although the latter of these (dropping house prices) might have the potential to be negative for landlords, there is one part of the property market that will welcome the news with open arms, and that is first time buyers.
The experts are not only predicting a slowdown in the rise of property prices, the are even predicting prices going in reverse. This is great news for first time buyers, who have only ever seen prices creep further and further out of their reach.
Another potential bonus is that interest rates could also drop meaning that you can get a nice cheap mortgage to go with your nice cheap house.
However, don’t all go rushing to the bank just yet. The common theme throughout the fallout from the Referendum has been ‘uncertainty’ and although it could be helpful above, it could also bring problems for the very same people it helps.
House builders will be hit the hardest by Brexit and when builders are in trouble, the lenders become more cautious. This could mean that finding finance may become harder, or required deposits could increase.
Overall, the same message applies – no-one can really be sure how Brexit will play out, so keep calm, carry on and prepare for any eventuality.
Keep your eye on the Morris Armitage website for the most affordable properties and shop around for the best mortgage deals, making sure their offer will remain once Article 50 is triggered. Having a mortgage agreement in principle in place will always help as it shows both the agent and the seller that you are a serious customer.
But the main thing is: save save save! The bigger deposit you have, the more negotiating power you have when shopping around for that mortgage, so to ensure you get the best possible deal, make sure you have the biggest possible deposit. This is hugely important, because if and when that fantastic opportunity arises, you need to make sure you are in a position to be able to make the most of it.
Looking to buy?
If you are currently looking to buy a property and would like to discuss your options in more detail, please call one of our expert advisors.