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:

Plan to avoid home buying stress

Plan to avoid home buying stress

Job interview, driving test, family life… the list of life’s stresses is, unfortunately, long and varied. New research has revealed, however, that buying a home comes out on top.   Can’t Buy Me Stress 37% of recent UK homebuyers said that buying a house was one...

read more
Seeing protection in a new light

Seeing protection in a new light

Nobody wants to think something bad happening to them. Perhaps it’s why so many people shy away from protection insurance – after all, it’s all too easy to think ‘it’ll never happen to me’.   Unfortunately, ‘it’ can and does happen, whether ‘it’ be injury,...

read more
Back to normal? Property update 

Back to normal? Property update 

 Amid the backdrop of war in Ukraine and the spiralling cost of living, unpredictability is at the forefront of many people’s lives right now. The outlook for the housing and mortgage markets is no less uncertain.   Taking a step back, however, it is possible to...

read more

(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

Flexible appointments

Or call —02380224925


Providing helpful and friendly mortgage advice in Southampton

First Floor, 9 Salisbury Road, Totton, Southampton, SO4O 2HW

02380 224 925


South Coast Mortgage Services Ltd is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority. Registered Office: 59 The Avenue, Southampton, Hampshire, SO17 1XS. Registered Company Number: 08414746 Registered in England & Wales.