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How Does Brexit Affect My Mortgage?

Understanding mortgages can be confusing. Understanding mortgages in the uncertain time of Brexit makes this task even more difficult. Luckily, My Mortgage Pro offers a new approach. We’ve designed our service to give you quick access to all the information you need on your mobile, tablet or another device, to give you a clearer picture of what’s right for you. We also understand that knowledge is power and we’re here to demystify the effects of Brexit on mortgages, remortgaging, and the property market as a whole.

Mortgage rates after Brexit

The Bank of England has been reducing the interest rate to record lows since the Brexit vote in 2016. From 0.25% in August 2016, mortgage rates have dropped to 0.1% in March 2020  as the Bank of England looks to control the economic shock of COVID-19 and Brexit uncertainty.

The Bank of England changes often affect mortgage lenders’ variable rates so in the wake of January’s changes, you may see more variable rates as economies open and come to grips with new practices and trade requirements.

If you’re looking to change your mortgage please be aware that you may have to pay exit fees if you change the terms before the end of your current deal.

The Popularity of Fixed Mortgage Rates

One trend that has developed as a result of the uncertainty is homeowners looking for a more fixed mortgage rate. Fixed rates are set from the start of the agreement and won’t change even if the market does. This means that you can potentially save on any volatility in the market but it can also mean you lose out on lower rates if the winds are more favourable. Property owners, like many other industries, are looking for stability in this strange time and finding a fixed mortgage is one way to ensure you know what to expect in the future.Fixed-rate mortgage deals have also seen a drop in rates from 2016 to 2020 with the average rate dropping from 2.54% to 2.02%.

Family moving in to new home

Remortgaging Your Home

Remortgaging has become a question over the past year with homeowners looking to more competitive rates and safer fixed-rate mortgages. This trend is down to factors like Brexit and the fallout from COVID-19’s knock-on effects on the economy. While it can be more beneficial, it’s important to get consult an expert, be it your bank, mortgage lender or mortgage advisor before going ahead with any major remortgaging plans.

What about holiday homes abroad?

If you’re worried about holiday homes abroad then the best thing to do is familiarise yourself with local authorities and EU holiday home laws. These laws can change depending on if you are a citizen, EU national or a non-EU national.

Financial advisor greeting homeowners

My Mortgage Pro

The My Mortgage Pro approach is to provide you with simple, jargon-free information about mortgages to help you find the best mortgage for your budget and needs. We’ll use our extensive experience, insight, and connections to connect you with a specially selected panel of expert mortgage advisers. Each of our recommended mortgage brokers are authorised and regulated by the Financial Conduct Authority.

If you need a mortgage, whatever your circumstances, we’d love to help you. Contact us now for a free initial chat and we’ll help you find competitive mortgages from certified mortgage provider.