April 21st, 2016
With only 2 months to go until the UK’s EU referendum, the Bank of England’s Monetary Policy Committee have warned a vote to leave poses the risk of less availability and higher interest rates on mortgages.
The BOE statement highlighted that heightened and prolonged uncertainty on credit conditions is likely to put pressure on the mortgage market, leading to further depreciation of sterling, and affect the cost and availability of financing for many UK borrowers.
With the threat of rising mortgage rates, Contractor Mortgages Made Easy have noted an increase in the number of clients opting for longer term fixed rates to protect them from the potential Brexit on the 23rd June.
However, not all market commentators agree that a vote to exit would have such a profound impact on mortgages, with equal numbers sitting on both sides of the fence.
Simon Butler, Associate Director at Contractor Mortgages Made Easy, commented: “It is impossible to predict the outcome and impact the referendum will have, making it difficult for our contractor clients when choosing between their mortgage options.
“However, many lenders are now offering extremely competitive long term fixed deals. Taking advantage of these 3 and 5 year rates would be a sensible option for anyone looking to avoid any negative impact following the vote.”
If you would like any advice on the options available to you, please call 01489 555 080 to speak to one of our experienced consultants.
Media Contact: Ratchelle Deary, Public Relations Manager
Tel: 01489 555 080