Since the UK voted to leave the EU in 2016, Brexit has been the bane of the homebuyer’s best made plans and left many with questions that seem impossible to answer. Do we make our move now despite the uncertainty? Do we wait until it’s all over? What impact will Brexit have on our mortgage rate? Should we just stay put?
As North Stoneham Park continues to take shape and draw interest from an increasing number of potential purchasers, we asked Chris Schutrups of The Mortgage Hut, and member of our panel of approved local mortgage brokers, for answers to the questions that so many are asking.
I’m wary of buying a house with so much uncertainty surrounding Brexit – would I be better to wait until it’s over?
An investment in a home is a long-term commitment. Although Brexit is presenting uncertainty in the short term, most people would agree the economy will adapt. It’s worth remembering the Help to Buy scheme, which is only in place for another five years, offers great value for money right now. Help to Buy brings down the cost of buying a new home significantly and the equity loan ultimately reduces the risk to the purchaser; the gain is shared, but so is any loss.
I’ve heard interest rates may rocket – is that true?
Economists have predicted that a No Deal Brexit would lead to an increase in interest rates. However, interest rates are used to control inflation and the general effect of any hike will usually lead to people spending less due to their reduced disposable income. Inflation is currently higher than we would like it to be, but this is generally due to currency fluctuations and increasing oil prices that can’t be controlled by domestic interest rates.
How long will this uncertainty affect the property market?
The general consensus is that the short-term property market is being affected by uncertainty as it directly correlates with consumer confidence. However, most politicians would agree there is currently an undersupply of available new homes meet demand so, although we may see a degree of uncertainty in the short term, in the long term the property market, which is a cornerstone of our future economic growth, will hold good.
Should I be worried about the future value of my home?
Home ownership is a huge commitment and one of the most exciting things you’ll ever do. It’s a long-term commitment and you’ll see your home increase and decrease in value over time but, generally, all historic data shows that house prices do increase over time.
Taking Brexit into account, what’s the best mortgage product for me?
Thanks to our current record low rates, there’s never been a better time to get a mortgage. You’ll have the option to fix your mortgage rate from two to 10 years depending on your personal preferences and attitude to risk.
The Mortgage Hut’s Chris Schutrups (left) is a member of our panel of independent approved local mortgage brokers and has access to the entire mortgage market to secure the best deals for the Park’s homebuyers.
Contact the mortgage team on 023 8023 5555 for more information.