I’ve taken a while to put pen to paper to write about mortgages in this “Post Brexit World,” because…. well I was waiting for something to happen!!
So far, nothing, nada, nix, nil, niente, rien. Everything appears to be business as usual.
Following the credit crunch in 2008, the government reformed the UK banks beyond all recognition and today they remain in pretty good shape with plenty of reserve funds and money to lend.
Sure Mark Carney, the Bank of England’s Governor has hinted that fresh stimulus could be on the way in the form of a cut in the Bank of England base rate, but will this really be passed on to borrowers?
If you have an existing “Tracker Mortgage, “ this would be great news as your lender will have no choice than to bring your mortgage rate down in line with the bank rate. But for bank and building societies to pass any rate cut on to other borrowers, this would mean cutting their savers rates for depositors. Savers have of course suffered the most during the 7 years of historically low interest rates.
One of the silver linings of Brexit — for now — is that mortgage rates remain very competitive. My advice on what to do now is to Remortgage to an excellent deal without delay, in case these deals are replaced or withdrawn.
Home movers seem to be holding off in case house prices fall, but even before the Brexit vote, the London market was slowing, with prices for the most expensive central London homes down by 8% since mid-2014, according to estate agent Savills.
In other areas the current uncertainty may reduce the level of demand for housing, but only in the short term. Family housing always remains in high demand. There are unlikely to be many sellers in a position where they are forced to sell at a heavily reduced price and neither is the market likely to be swamped with cheap “repossessed houses” as the repossession rate is currently the lowest on record according to the Council of Mortgage Lenders.
There are winners and losers in everything, and Brexit seems to have given buyers a bit more buying power and borrowers cheaper mortgages for at least the time being!
The government has announced plans to make buying or selling a home cheaper and quicker with what is being called the “biggest shake-up to the homebuying system in this country’s history.”
5 days ago
Almost one in five equity release mortgages are now taken out to provide financial support to family.
7 days ago
According to industry data, the expected wait for those looking to buy a property has dropped from just over 11 months to less than six months.
It is common for your first mortgage payment to be higher than your subsequent monthly payments for two reasons.
12 days ago
Firstly, a big congratulations, you’ve now exchanged contracts! After weeks and months of waiting, you are about to move in. What should you do first?
The chancellor will deliver her second budget this autumn. Due to slow economic growth and high inflation, the government need to manage a £40 billion shortfall in public finances. There have already been reports about changes to taxes including income tax and capital gains tax.
29 Aug 2025
The chancellor has advised that landlords could have another tax to pay this autumn as the Treasury decide whether to extend national insurance contributions to rental income.
According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes.