With less than three months to go before the UK’s exit from the EU, homeowners and homebuyers are still none the wiser about how Brexit will impact on their personal finances. One of the big questions that many people are facing now is whether or not to sort their mortgage out before 29th March. While some believe that not a lot will change after the Brexit deadline, many fear that a bad deal, or even a no-deal scenario, could have serious consequences for the UK economy.
If the current fixed term on your mortgage deal is coming to an end, or if you’re trying to secure a mortgage for a new purchase, Brexit may well have an impact on your finances. So should you sort your mortgage out before the end of March or hope for the best in a post-Brexit world? We decided to find out.
After a decade of historically low interest rates, the Bank of England base rate has begun to slowly creep up. According to @ClearScore, “Mark Carney, the governor of the Bank of England, has hinted that further increases may be needed in the event of a no-deal Brexit.”
However, as the precise impact of a no-deal Brexit is still unknown – or even if Parliament will allow a no-deal to take place – we’ll have to wait and see whether or not interest rates will really be raised in the coming months.
If you’re worried about the potential increase in interest rates, sorting your mortgage now will help to protect you from the immediate repercussions of a rate rise. However, some mortgage providers may well offer less competitive deals in the run up to Brexit – just in case interest rates go up sharply in the following months.
The UK housing market
As well as influencing interest rates, Brexit is also having an impact on buyer confidence. The last few months have seen a significant slow down in the UK’s housing market. Properties are now taking longer to sell and a lot of homeowners are dropping their asking prices in order to attract interest. This is largely down to uncertainty surrounding Britain’s exit from the EU. Both buyers and sellers are waiting nervously to see what will happen and many are putting their moves off until the situation becomes clearer.
It’s impossible to say whether or not this cautious approach will pay off. However, if you are planning on buying or selling in the next few months, it’s important to be aware of current market trends.
With so much still to be finalised around UK’s exit from the EU, mortgage providers, homeowners, and buyers remain in the dark when it comes to sorting their finances. Find out more, and get the latest mortgage advice, by exploring our site, or getting in touch with a member of our team today.
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Written by: Cambridge Web Marketing