The housing market is constantly changing. Many of those who plan to move overseas and want to cash in on low property prices may find healthcare and planning restrictions have blighted their dream. Only sell if you’ve carried out the research.
Recent changes in UK pension legislation mean that many older Brits can invest their savings in an overseas dream. Low prices overseas tempt investors of all ages, but what looks good on paper or on a tempting TV programme often turns into a nightmare in reality. Local taxes, kickbacks and ancient property deeds mean that you must seek the advice of UK based experts. VP Notaries in London may be able to help you with the preparation of documents required to register your purchase and with some of the intricacies of international property legislation. You may think you speak a foreign language fluently, but once you’re faced with a legal document, often phrased in arcane dialect, you will need help.
Even if you have money, you can’t always borrow
Only sell if you can afford to buy. Many of those who received a mortgage in 2010 or earlier will not be eligible for a mortgage in today’s tough financial climate. The Financial Conduct Authority (FCA) has instructed all lenders to ensure that all borrowers can afford to repay any loans they want to take out; this includes mortgages.
If you received a mortgage as a result of the old self-certification scheme, then check your credit rating to ensure that you can receive a new mortgage under the new rules. Your credit score is an important factor, so, even if you think that you’re financially safe and can easily afford to sell your house and obtain a new mortgage, your credit score might say otherwise.
With the recent announcement in The Telegraph that the era of cheap mortgages was at an end, make sure that you are aware of all the facts. You may sell your house at a wonderful profit, but banks and building societies have recently announced an increase in interest rates, and this is in advance of the Bank Of England’s projected rise. You’ll have to do some arithmetic and take into account the worst possible scenario before you can commit to buying a new home.
An artificial market
There are some who believe that the current housing market is artificial. While on the one hand the BBC states that ‘the housing market is hotting up’ on the other hand reports claim that ‘foreign criminals are driving up UK house prices.’ The number of approved mortgages has increased but this was mainly due to low fixed rate mortgage deals.
Think before you sell
If you have to move for a job or for other reasons then go ahead. Otherwise don’t let your future happiness depend on the headlines. Estate agents write very good press releases that find their way into journalists’ copy. What’s the point of selling your beautiful home in Northampton, for example, in exchange for a rabbit hutch in London? Before you sell, read everything you can, check your credit report and think about whether you’re investing in a future home or just a transitory business transaction.