There’s no getting away from it, the TV, radio, social media and newspapers are all making a lot of noise about Brexit. The trouble is, with all the uncertainty and speculation surrounding us it’s hard to know exactly how it will affect us, especially our finances.
We’ve had a look what part of your financials it may affect and what to do to ensure you are prepared after Brexit happens.
Even if we leave with a no-deal, most homeowners here in the UK have mortgages with a UK based lender so you shouldn’t see any changes happening straight after Brexit. However, if there are any Brexit knock on effects to mortgage prices in the future things may change. Although nobody can be certain about rates following Brexit, anyone who is coming close to the end of their fixed rate mortgage period and is looking to re-mortgage may want to look around now whilst interest rates are at a low level.
According to this article Brexit could be beneficial to First Time Buyers as it’s thought house prices could drop in the short term. As mortgage rates are low this means it could be a great time to get a foot on the property ladder.
If you have savings held in the UK, up to £85,000 per person will continue to be protected by The Financial Services Compensation Scheme. This provides a safety net for your savings should companies go bust. However, those who have savings with providers outside of the UK in Europe should keep an eye on things.
It has been said, or rather speculated that if the pound drops interest rates could rise post Brexit. This is because when the pound drops it pushes up inflation which they usually try and sort out by increasing interest rates to control the demand so prices will fall. The flip side of the coin is that the pound doesn’t drop, and the economy is boosted, meaning the opposite could happen.
Using your cards abroad
Those who use their credit or debit cards in Europe need to be aware of it costing more if we leave without a deal. The payment system that sits behind us spending on our cards in Europe is regulated by various European laws. When we leave these won’t apply so it is something to watch out for if you do a lot of travelling in Europe.