The UK has made its decision to leave the EU, and whilst the technicalities need to be approved and ratified by parliament, it’s expected that within the next few months Article 50 will be issued, which formally starts the process of the UK’s exit from the EU. We explore what impact Brexit will have on the UK housing market and mortgages for UK households.
As soon as the stock markets opened on Friday morning, after the UK had voted to leave the EU, we learnt that £100bn had been wiped off the value of the FTSE 100. The banking industry and house building companies were seemingly hit hardest, as worried investors immediately concluded that those industries would downturn. Whilst there was some recovery in the stock market, it still seems that the housing industry could be due a period of instability, along with the rest of the economy.
One of the early talking points has been about whether interest rates would rise in the short-term, to help defend the weakening position of the pound. Mark Carney, governor of Bank of England, has yet to confirm or deny any immediate action on interest rates. Many analysts are speculating a rise in interest rates is inevitable. Some are more cautiously suggesting no impact on interest rates. Either way, there is a great deal of uncertainty. Many lenders are moving to introduce attractive fixed-rate options.
So perhaps it’s time for you to consider a fixed-rate deal? It’s anticipated that a rise of just 0.5% in interest rates will have an impact on the average tracker mortgage by around £25.
We’ve got a team of consultants who are closely assessing the best fixed-rate deals on the market and are available to help you switch, and get security for the medium term.
Call through to the office on 01604 877999 to speak to a consultant.