Moving house during Brexit?

[FreeLitres]

Hmmmm - what will happen now?

We have accepted an offer on our house. We have had an offer accepted on a new house. We made a full mortgage application (~£200k) last week and we are expecting to hear back any day now. Already balls deep in fees, valuation costs, surveys, etc.

Any ideas what might happen now?

Might people in our chain start pulling out due to financial uncertainty?
Might the bank put a freeze on new mortgages?
Will interest rates go crazy?

Not got a good feeling about this

[GT03ROB]

FreeLitres said:

Might people in our chain start pulling out due to financial uncertainty?
Might the bank put a freeze on new mortgages?
Will interest rates go crazy?

Yes
No
No

[davepoth]

Depends on your definition of crazy, really. I can see a rise coming.

[TwigtheWonderkid]

GT03ROB said:

FreeLitres said:

Might people in our chain start pulling out due to financial uncertainty?
Might the bank put a freeze on new mortgages?
Will interest rates go crazy?

Yes
No
No

My guess is

Yes
No
Yes

[Wardo75]

I am in a similar situation buying our first house which is a new build. Literally about to exchange contracts, deposit is with our solicitors. Realistically, although we could technically pull out of it, I don't see us actually doing it. We have a little one on the way and similar to yourself have already invested a bit in it.

Nervous times

[rs4al]

Wardo75 said:

I am in a similar situation buying our first house which is a new build. Literally about to exchange contracts, deposit is with our solicitors. Realistically, although we could technically pull out of it, I don't see us actually doing it. We have a little one on the way and similar to yourself have already invested a bit in it.

Nervous times

Don't exchange contracts yet, ring up the house builder, threaten to pull out and negotiate a lower price, the house builders are fecked for the short term and will probably bite your hand off.

If you have the minstrels !!

[richatnort]

I'm about 80% through buying our first house too and i'm not too worried about it.

What i wish i had done was take a 5 year fixed rate instead of 2 but i'm going to be in that house for easily over 10 years by which point i expect things to have settled down and be back where we are.

I'm just worried that the loan I was going to get to do the house up a bit will be on a massive interest rate

[Durzel]

BoE has a difficult decision to make regarding interest rates.. they could go down or up in response to this. Either decision is fraught with risk. Carney did a pretty good job of trying to dampen the hysteria, but it's far too early to tell what will happen. An interest rate change in July wouldn't be surprising at this point, some analysts are suggesting it'll drop 25 or even possibly 50bpc (to zero).

[V8A*ndy]

TwigtheWonderkid said:

GT03ROB said:

FreeLitres said:

Might people in our chain start pulling out due to financial uncertainty?
Might the bank put a freeze on new mortgages?
Will interest rates go crazy?

Yes
No
No

My guess is

Yes
No
Yes

[chris7676]

Durzel said:

BoE has a difficult decision to make regarding interest rates.. they could go down or up in response to this. Either decision is fraught with risk. Carney did a pretty good job of trying to dampen the hysteria, but it's far too early to tell what will happen. An interest rate change in July wouldn't be surprising at this point, some analysts are suggesting it'll drop 25 or even possibly 50bpc (to zero).

Indeed.
It may be even more likely to cut the rates.
However this will increase the risk of more inflation at the later stage and possibly a need for a sharper rate rise (nothing new here...).

Btw, housebuilders' shares have tanked a lot so I would definitely be thinking of reoferring on a new build...

[Wardo75]

rs4al said:

Don't exchange contracts yet, ring up the house builder, threaten to pull out and negotiate a lower price, the house builders are fecked for the short term and will probably bite your hand off.

If you have the minstrels !!

I'm currently deciding if I have big enough minstrels to attempt that lol..... I would be completely shafted if they turned around and said no sweat we will put it back on the market but my gut is telling me to go for it.

[V8A*ndy]

Base rate might remain the same or fall but banks will be charging more.

The doors are already closing to funding today. I just hope this is just 1st day nerves but as the twist and turns of negotiation carry on the markets are going to be all over the show.

BoE moved quickly. They obviously learned from the past dithering of Northern Rock.

[rsbmw]

I think Carney's statement was pretty clear that the BoE is ready to re-introduce QE and cut rates if it has to. Seems they will be happy to live with a devalued pound to stabilize the economy internally, should also support exports and thus industry. I'm also not entirely convinced banks will be charging more, they have large capital reserves and will need to keep lending to boost the P&L.

[V8A*ndy]

rsbmw said:

I think Carney's statement was pretty clear that the BoE is ready to re-introduce QE and cut rates if it has to. Seems they will be happy to live with a devalued pound to stabilize the economy internally, should also support exports and thus industry. I'm also not entirely convinced banks will be charging more, they have large capital reserves and will need to keep lending to boost the P&L.

Not exactly QE as we previously know it but it will be implemented at the expense of funding for lending.

Devalued pound will give inflationary pressures.

Banks are getting it tight right now on the markets.

[afrochicken]

davepoth said:

Depends on your definition of crazy, really. I can see a rise coming.

I've been wrong before, but I'd imagine the UK base rate will go down before it goes up

QE, liquidity programs, rate cuts. Got to support those asset prices somehow...

[V8A*ndy]

afrochicken said:

davepoth said:

Depends on your definition of crazy, really. I can see a rise coming.

I've been wrong before, but I'd imagine the UK base rate will go down before it goes up

QE, liquidity programs, rate cuts. Got to support those asset prices somehow...

Not the base rate we should be concerned about but the banks customer rate.


Markets reckon 2 cuts to base in next 6 months to keep the banks at a steady rate

and 3% hit to growth in the long run.

Bad bad news if this is correct.

[afrochicken]

Ah right yes I wouldn't bet against the rate that the customer pays going up. I thought davepoth was talking about the base rate, which some think will have to rise in order to try to prop up the GBP

[rsbmw]

It will eventually rise to prop up the GBP, but not before it falls to prop up everything else!

[V8A*ndy]

afrochicken said:

Ah right yes I wouldn't bet against the rate that the customer pays going up. I thought davepoth was talking about the base rate, which some think will have to rise in order to try to prop up the GBP

Just to add to for clarification the banks might need this base cut as they will have to put savings rates up.

Carney making the right noises.

OZZY Boy and the G7 better have things wrapped up tight.

We shall find out tomorrow morning.

[mike74]

Had a msg from an Estate Agent mate a little earlier, their phones have been ringing non-stop all morning with buyers withdrawing or reducing their offers.