What has been happening
Since Brexit, the Monetary Policy Committee have met, where they voted to lower the base rate to 0.25% – this was done to help the UK economy recover following the Brexit vote and to help avoid a recession, of which there are many rumours this may still happen.
As homeowners and buyers may err on the side of caution and with the lower base rate announced this month, lenders may wish to generate custom and keep things buoyant by introducing some phenomenally low rates, particularly for short-term fixes. There are still some great rates to be found on long-term fixes if you are looking for more financial security in the long-term.
If you’re on a variable rate mortgage, then the rate cut will work in your favour. But if the economy begins to grow, then typically this will also push up interest rates as people are encouraged to save rather than borrow. Interest rates may be volatile for some time so it’s important to always stay on top of the situation, making sure that will be able to afford the repayments if the rates were to go up at short notice.
Finally in summary
Whatever your situation, it’s clear that Brexit could bring both positive and negative news and as time passes, many of the questions you have regarding your mortgage will become much clearer.
It’s important not to make any judgements based on the first few days of the referendum results – mortgages are a long-term commitment so it’s important to think about the economy long-term too.
One of the biggest positives right now is that there are still some great mortgage rates to be had – to make sure you are in the best financial situation to take advantage of these, then it may be wise to speak to a mortgage adviser. They can make sure that you can find the right deal that is best for your circumstances, and help you to give you financial security for the future or allow you the flexibility to change your mortgage if dictated by the wider impacts of Brexit.
Speak to an adviser
Our trained expert advisers have access to the UK’s leading lenders and using their knowledge and skills will place you with the most suitable leader and product for your needs.
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