We’ve now seen the impact it has had on our economy for a year. British currency (GBP) has lost 14% of its value compared to the Dollar since June 23rd. So what effect has this had on the mortgage industry?
Furthermore, we need to make a distinction when it comes to mortgages and Brexit. Brexit has, and will continue, to have an effect on house prices in Britain. However, what are the effects it has had on the mortgage market?
So what happened?
On June 23rd, 2016, the United Kingdom decided to leave the European Union. This has had the effect of weakening our currency, but average house prices in the UK have continued to grow. House prices in the UK have increased by 4.9% in the year since June 2016, showing small signs of encouragement.
However, this increase pales when compared to the growth between June 2015-June 2016, which stood at 8.2%.
So this means houses are still increasing in value, just not at the same rate as pre-Brexit.
What has the effect been on mortgage rates?
Mortgage rates are now at the lowest we have ever seen them, with some products on offer at sub 1% introductory rates. This is astonishingly cheap, and something remortgagers should be taking advantage of. If you are stuck on your lender’s SVR, then now is the time to do something about it.
What should I do?
Habito offers a fast and free, online mortgage broking system, designed with you in mind. If you’re thinking about taking out your first mortgage, don’t hesitate to get in contact with one of our friendly mortgage experts.
If you currently have a mortgage, and you’re approaching the end of your introductory/fixed rate period, now is the time to consider Habito. We want to help people avoid the ‘Mortgage Loyalty Penalty‘, where they end up overpaying on their interest.
We offer a fast, free, impartial service, so what’s the wait? Sign up and complete our Digital Mortgage Adviser, and in seconds, you can get an illustration of how much you could expect to borrow. The next step is to Sign Up, and speak to one of our mortgage experts. They will help guide you through your application, from sign-up to completion.