Even before the UK voted to leave the European Union, much had happened in the property industry in the last year. Buy-to-let investors had fallen out of favour with the Treasury as higher stamp duties on second homes were introduced and a staged withdrawal of mortgage interest relief was announced.
Now homeowners and buyers are waiting to see if Brexit news will translate into a more febrile residential property market. Estate agents have reported an initial flurry of activity in the days directly following the vote, as parties who had inserted Brexit clauses pulled out of purchases. However, there has also been an influx of overseas buyers into the London market making the most of discounts provided by the weak pound.
The mortgage market is staying strong, for now. You should speak to your local mortgage broker like Rivington Mortgages Ltd if you are still concerned. The cost of fixed mortgages depends largely on how easily banks can access money to lend out. The start of the year saw a challenging economic period which forced inter-bank borrowing rates down (meaning lower mortgage rates). Brexit news is having a similar effect – record low fixed-interest mortgages of one or two per cent are now on offer to borrowers as the Bank of England has moved to provide additional finance to banks.
If you are keen to have a greater level of certainty over your repayments in the next few years, you could consider moving to a fixed rate deal while these low rates exist.
Have you reviewed your property ownership? Is your mortgage still giving you the best deal available? To discuss these issues further, please contact me on 020 7636 7006.