Is the reaction of the markets to a threatened no deal Brexit – or even an orderly Brexit – worrying you? How might it affect your finances, your mortgage repayments or even your chance of securing a new mortgage from your lender?
Some good news: the Bank of England has just announced that it will be holding the interest rates at 0.75 per cent for now. But if you are home owner, or only just looking into getting a mortgage as a first-time buyer, what does this announcement mean for you?
Martijn Van Der Heijden, Chief Strategy Officer at online mortgage brokerage Habito, comments on the implications of the decision for both first-time buyers and those already with a mortgage, ‘Interest rates remain relatively low which will be welcome news for those looking to get a good deal on their mortgage. This “wait and see” approach from the MPC (Monetary Policy Committee) is something we also see reflected in our own data with a surge in buyers choosing fixed deals for five years or more as they try to “Brexit-proof” their mortgage and lock in the same rate until 2024 and beyond.
‘We have also seen positive figures recently on the take up of buy-to-let and first time buyer mortgages, something which has led to lenders offering more competitive products to support people moving.’
A no deal Brexit could mean a sharp rise in inflation and the fall of the pound, which would mean that the Bank would need to reconsider interest rates, either raising or lowering them depending on what’s needed to support the economy.
So, it looks like now could be the time to consider securing the best fixed-rate mortgage if you are buying your first home or remortgaging. Doing this now could make particularly good sense given the stark warning the Bank of England has issued about the potentially detrimental effects of Brexit on the UK economy. And it will give you certainty. No bad thing in these uncertain times.
BY ANNA COTTRELL
Source: Real Homes