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How is My Mortgage Going to be Affected by Brexit?

As we go into the last few days before we all cast our vote on whether we should stay or leave Europe. And with the news still being filled with the “Will we? Won’t we?” questions and debates. It’s worth a moment to step back and take a look at what “might be”.

What is ‘Brexit’?

Brexit’ is the common name for the referendum on whether the UK should to stay in the European Union or whether it should leave. After weeks of politicians campaigning on whether to remain or to leave, a public vote to decide is to be held on Thursday 23 June.

I’m told that leaving the EU could affect the UK’s economy but how would it affect getting a mortgage?

The real truth of the matter is that, until it happens, nobody can be completely sure. The overall consensus is that existing mortgages would remain unaffected if we were to leave.

However, if we do leave, the UK would be able to form its own regulation, which means the government could change lending rules when they like.

However, leaving the EU will not mean that people will stop buying houses. People will still buy homes and lenders will still provide mortgages.

What about my mortgage rate?

Like a lot of questions about what would or could happen, a certain answer is hard to say. But there is a chance that leaving the EU could lead to a rise in rates.


If the UK were to leave, there would be a period where our trading relationships with the rest of the Europe will be uncertain. This could lead to investing in the UK being seen as risky by investors. This would weaken the pound which could lead to the Bank of England increasing interest rates to encourage spending from within the UK, instead of relying on import and export trading.

What can I do?

Whether we vote to stay in or out of the European Union will remain to be the talking point right up until Thursday. But with the amount of uncertainty surrounding what would happen if we were to leave the union it is important to seek advice from a professional mortgage adviser if you are considering a mortgage or remortgage within the next few months.


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