Following the UK’s vote to exit the EU, we appreciate there will be questions about the impact this may have on mortgage interest rates.
A number of our major lending partners have indicated they don’t anticipate any immediate change, although looking forward there could be some adjustment to mortgage rates. There has been nothing to suggest that high street lenders plan to change criteria.
Mortgage borrowers currently have an array of competitive deals on offer, generally at record lows. In the short term there could even be room for further reductions with some suggesting that Base Rate could be cut to act as further stimulus. Swap rates have already fallen following the result of the referendum, which could allow for more cuts to already cheap fixed rate mortgage deals.
However, counter to that is the concern that the weakening in the pound could lead to higher inflation in the longer run. That would typically be controlled through higher interest rates, which would clearly affect mortgage borrowers.
There is bound to be a lot of uncertainty to come and the only certainty at the moment is that mortgage rates are currently extremely competitive.
We will continue to monitor the market closely for our customers.
What Brexit might mean for mortgage borrowers