On 31 December, the UK formally severed its ties with the EU and a new era for the country dawned. But what effect will Brexit have on the property market – and your mortgage?
In November 2018, Bank of England (BoE)’s November Financial Stability Report predicted, in a worst-case scenario, that property prices could plummet by over 30% following Brexit, pushing many mortgage holders into negative equity.
The COVID silver lining?
The Brexit transition period, however, ended up coinciding with the pandemic, the impact of which has been so large that experts believe it will exert a much larger influence than Brexit on property prices.
In fact, pent-up demand following the spring 2020 lockdown, combined with the Stamp Duty tax break, caused house price growth to reach a six-year high at the end of 2020.
What about my mortgage?
Again, the pandemic is likely to have a greater impact than Brexit on interest rates in 2021, with the BoE base rate expected to remain low as the economy recovers. T
herefore, mortgage finance is likely to stay competitive for borrowers this year. First-time buyers will also welcome the return of high LTV mortgages, with 90% LTV deals almost doubling between 1 December and 1 January.
Your home may be repossessed if you do not keep up repayments on your mortgage
Catch up on our other blog posts:
Mortgage lending has soared to record levels, according to latest data from the Bank of England1, which reveals that gross advances in Q1 totalled £83.3bn, which represents a 26.5% increase on the same quarter in 2020 and the highest level since Q4 2007. Impact of the...
Saving for a deposit has been cited as a major barrier to purchasing a home by 59% of people, according to the latest survey from the Building Societies Association (BSA)1. Climbing from 54% in December last year and just 40% last June, raising a deposit is...
Do you think you know how much your home is really worth? Would you be surprised if it was worth much more or much less? Many homeowners’ estimates don’t live up to reality, with 45% of respondents to a recent survey1 undervaluing their property and 25%...
(Your home may be repossessed if you do not keep up repayments on your mortgage)
We charge a fee for arranging and advising you on the mortgage. The fee will be dependent on your circumstances but will not exceed £499. (Our typical fee is £299.)
For Lifetime Mortgages/Equity Release the fee will be £799.
Our mission is to provide honest mortgage advice, whilst helping you save money.
Get in contact
Or call —02380224925