With the UK leaving the EU, there has been lots of speculation and uncertainty over what will happen with interest rates and how it could impact people’s mortgages.
Deal or No Deal
As we’re currently in a period of transition, this could mean rises or falls in interest rates; depending on how the economy performs now we’ve left. The Government might decide to increase rates if inflation becomes a problem or they could look to reduce rates to help encourage growth.
How an interest rate rise could affect your mortgage
If interest rates rise, then those with variable rate – or tracker – mortgages will most likely see their payments increase. If you have a fixed rate mortgage though, your payments won’t change until the end of your fixed rate period. Once your fixed rate period ends, you will then revert to your current lender’s standard variable rate – unless you take out another fixed rate mortgage product.
How a drop in interest rates could affect your mortgage
If interest rates drop, then this is good news if you are on a variable rate product or looking to remortgage. If your mortgage is on a fixed rate, then you would not benefit from any fall in interest rates.
How to find out if your mortgage will be affected by Brexit
It may not be a bad idea to get mortgage advice, as there could be a better, cheaper product for you to switch to regardless of Brexit. Mortgage brokers are often your best port of call. If you decide to approach an individual lender, please note they can only review their own range of products to find you their best deal.
Clever Mortgages can explore much further. We review an extensive range of options from 100s of different lenders to find the one you’re most comfortable with, so you can be sure of staying happy in your home.
We have access to a wide range of mortgages and lending options. Give us a call now if you want to chat about your requirements – even if you have bad credit, we could still help!