How will Brexit impact my mortgage?
Fri 01 Feb 2019
With questions being raised around Brexit, many people just want to know how it will affect them.
As most mortgage rates are linked to interest rates, the impact of a Brexit deal/no deal may have repercussions on the economy - good or bad. Interest rates could drop and inflation could go up under a no deal. Things could go smoothly or it could be a rough road ahead, to be honest – no one knows! So it’s best to forget all the predictions and stick to what we know.
The average price of a property coming to market is up by just 0.4% for January, the lowest monthly rise seen at this time of year since January 2012, according to the property website Rightmove.
Although there are signs at the start of January that the housing market is picking up, the political uncertainty around Brexit, added to the lack of supply and affordability affecting the market means it’s difficult to predict the medium term outlook of the UK housing market.
Although there was an increase last August, the Bank of England base rate remains low at 0.75% leading to some good news for first-time buyers and those re-mortgaging, we've seen a number of lenders have cut their rates.
What are my options?
This depends on your appetite for risk and your personal circumstances.
Re-mortgaging – If you want to be able to budget around your mortgage payment each month then a fixed mortgage rate could give you the stability you need.
However fixed rates aren’t for everyone. There is the risk that interest rates could fall meaning a mortgage rate that isn't fixed could work for you, if you’re willing to take the risk and can afford your mortgage should rates go up.
First-Time Buyers – The uncertainty around Brexit could benefit first-time buyers with some people choosing to secure a great mortgage rate and locking it in to a five year fixed rate deal.
How can we help?
Getting a mortgage is one of the biggest financial decisions you’ll make and not everybody’s circumstances are the same so it’s important to get it right. If you’re buying a home or are considering re-mortgaging to a better deal, our mortgage advisors can search the whole of the market and advise the best option available for you.
Mortgage Excellence Plc (MEX), trading as Police Mutual is registered in England and Wales No. 03527577. The registered office for MEX is Alexandra House, Queen Street, Lichfield, Staffordshire WS13 6QS. MEX is authorised and regulated by the Financial Conduct Authority. For your security, all telephone calls are recorded and may be monitored. Calls to 0800 numbers are free from UK landlines and mobiles.
Type of article: Articles
Category: Life events
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