How Will Brexit Affect Your Mortgage?
Whether you're in the remain or leave camp, there's no doubt that Brexit has created a whole lot of uncertainty in the UK over the last couple of years - and especially in the last few months. It's hardly surprising that many of us are wondering what the ultimate impact of Brexit will be on our lives!
The fact is, even the experts can only guess what the coming months and years will bring and the answers will largely depend on what deal we get - and indeed IF we get a deal at all.
Here at BB we don't claim to be able to read the future, but we can make a few educated guesses of our own when it comes to what's going to happen to your mortgage....
Where are We Now?
Before we get out our crystal ball, let's take a look at what the situation is right now. It's clear that Brexit uncertainty has already had an impact on our economy, and in turn on the property market. So what are we seeing so far?
Stagnant House Prices
People are nervous about buying property at the moment due the economic uncertainty and this has led to the slowest year-on-year growth in property prices for over six years. According to the National Index,
Low Mortgage Rates
On the bright side, the same uncertainty that has slowed down property values has also driven down interest rates and those who are seeking to get a mortgage or remortgage are getting some pretty good deals!
Our Brexit Predictions for Your Mortgage
First Time Buyers
If you're thinking about buying your first home then the good news is that now is a great time to do it because both house prices AND interest rates are low!
Some experts are predicting that house prices could drop even further but with others predicting the opposite, now could be the perfect time to take the plunge!
Before you do - check out our Top Tips for First Time Buyers.
It's important to be aware of your options so make sure you give us a call too so we can support you throughout the process! (Or just fill out the form below and we'll call you 👇).
On the flip side, there's no doubt that now is a tricky time to be selling your home. House prices are low and buyers are nervous: not an ideal combination!
The good news is that Mark Carney (the governor of the Bank of England) has hinted that interest rates may take another dip in the coming months, which if echoed in mortgage rates may lead to an increase in buyers again. Unfortunately, there's no guarantee that lenders will reflect a change in their products.
If you're concerned that house prices may continue to fall then now may be the best time to act. And of course, when it comes to house value, every little helps so make sure you check out our post on 5 Easy Ways to increase the Value of Your Home.
If you currently have a mortgage then the best way to protect yourself from economic uncertainty could be to remortgage at a fixed rate.
Of course, as we've mentioned, rates may fall again over the coming months so if you're happy to accept some risk, then a tracker mortgage might be the option for you.
As always, we would suggest speaking to an expert before you dive in and of course, we would be delighted to chat to you about what options would work best for you.
If you'd like one of our friendly advisers to call you back, just pop your details below and we'll be in touch.
Before you go...
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