3 tips for homeowners following a Brexit vote
By Bea Patel on 30 Jun 2016 in Selling
Britain faced its biggest decision for decades last Thursday, 23 June. We took to the polls to vote if Britain should leave or remain in the EU.
Before the EU referendum vote, we discussed the potential impact of a Brexit on the UK property market. Forecasts showed a potential drop in house prices – £7,500 in London and £2,300 UK-wide as predicted by the National Association of Estate Agents. Did that mean homeowners rushed to sell their property? No. Those with flexibility didn’t, and much preferred the ‘wait and see’ approach. Property activity slowed as people awaited the outcome of the vote.
With mixed opinions of optimism and fear for the property industry, Britain has decided to leave the EU. But what does this mean for homeowners? As we set sail into uncharted waters, it is very much that – the unknown.
So we’ve shared our three tops tips for homeowners:
Tip 1: Keep calm and don’t panic
This can be a scary time for homeowners unsure if the value of their home will fall – but a knee-jerk reaction to sell your home on the basis of this is unnecessary. History shows property prices have risen over the long-term. And they have also risen every month so far in 2016 according to Rightmove data. Although there is no guarantee of the full impact of Brexit on house prices, many experts’ express short-term concerns but are optimistic about the long-term effects – that the industry will remain strong.
Tip 2: Know your mortgage deal
Check your mortgage agreement.
Many homeowners are on fixed base mortgages. If you’re not, you may want to think about securing a fixed rate deal and you should shop around for the best deal. It’s also a good idea to seek specialist advice from an independent mortgage broker or speak to your lender about your agreement. If you have savings you may want to pay a lump sum of your mortgage off to reduce your loan-to-value. Many lenders let you pay make over payments, so speak to your lender about your options.
Tip 3: Stay put
This is an uncertain time. If you don’t need to move, hold off until you know more about the impact of Brexit on property values and follow house price fluctuations. You should also speak to local estate agents or surveyors about your local market, and seek their expertise on suggested falls or rises in house prices.