What Brexit means for your contractor mortgage

15th March 2019 / in Mortgages, News / by Gordon Hunter, MD

With Brexit looming – whether you’re a Remainer or Brexiteer – there is no denying that there is a lot of uncertainty around the UK at the moment.

Will we leave with a deal? Will we leave without a deal? Will we postpone leaving? Will we leave at all? A lot of questions still remain unanswered.

What does it mean if I’m a first-time buyer?

Brexit could benefit first-time-buyers, with some experts predicting that house-prices would drop. In August 2018, Bank of England governor Mark Carney said his worst-case scenario was that house prices could fall as much as 35% over three years if the UK leaves the EU without a deal [1]. This means some houses could become more affordable for first-time-buyers to purchase.

Are you a contractor looking to purchase your first home? Speak to our expert contractor mortgage advisers, freephone 0800 211 8700 or fill in our online enquiry form.

What if my mortgage deal is coming to an end?

Mortgage rates throughout the UK remain competitive. With the Bank of England base rate still relatively low, switching your mortgage onto a new fixed rate deal just now could be beneficial so that you know exactly what you’re paying out. The base rate has more room to increase rather than decrease.  There are options available for 2-year, 3-year, 5-year and even 10-year fixed rates.

The uncertainty also means that while the Bank is forecasting a “gently rising path for the bank rate over the next three years” this is based on “a smooth transition to a Brexit deal that is the average of various possibilities.”

Mark Carney also stated “The appropriate path of monetary policy will depend on the balance of the effects of Brexit on supply, demand and the exchange rate. The response will not be automatic and could be in either direction.” [2]

Are you a contractor thinking about remortgaging your home? Mortgage rates can differ depending on your circumstances. Speak to our expert contractor mortgage advisers, freephone 0800 211 8700 or fill in our online enquiry form.

There’s no denying that life still goes on with all this Brexit uncertainty. There are plenty of contractors still purchasing and remortgaging their homes. It’s worth taking professional advice before making any decisions.

For more information on your mortgage as a contractor, it’s best to speak to our specialist contractor mortgage advisers – Freephone 0800 211 8700 or enter your details on our contact form.

Sources:
[1] BBC, September 2018 – Brexit: Carney warns no-deal could see house prices plunge https://www.bbc.co.uk/news/business-45516678
[2] Mortgage Solutions, February 2019 – “Fog of Brexit” means rates could move in either direction: Carney https://www.mortgagesolutions.co.uk/news/2019/02/07/fog-of-brexit-means-rates-could-move-in-either-direction-carney/

Your property may be repossessed if you do not keep up repayments on your mortgage.

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