What does Brexit mean for Mortgages? My Opinion.
Brexit and Mortgages – My Opinion
The UK has voted to leave the European Union this morning despite the majority of younger Brits voting to remain. What this vote means in the long-term for the markets nobody knows, but one thing is inevitable – a period of Economic instability. The property market depends upon consumer confidence and the Brexit vote could have the effect of creating uncertainty and it is this uncertainty that can put people off making large commitments such as moving house. History tells us that nothing much puts us off our obsession of property ownership in this country but there are times when people are more inclined to keep their money in their pocket.
In terms of practical steps you can take if you are worried that UK interest rates could rise as a result of Brexit is to take a look at your own Mortgage and if you are sitting on a standard variable rate of interest look to change that to a fixed rate. The Bank of England base rate has been 0.5% for over 7 years now and one day this will go up, be this sooner or later. In terms of the fixed rate Mortgage options available, these are now at their lowest levels since I started out as a Mortgage Broker back in 1997.
If your Mortgage is your biggest monthly commitment and you are worried that your payments could go up then now is the time to consider a Fixed rate.
Malcolm Davidson – Your Local Sheffield Mortgage Broker
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