Homes, property and mortgage changes after Brexit

Under current proposals, the UK is set to leave the EU on 31 January 2020. There’s still a lot of uncertainty surrounding what will happen, but we’ve put together some guidance to help you act now if something is going to affect you.

Will mortgage interest rates rise and what can I do about it?

UK leaves with or without a deal

Both a deal or no deal scenario could mean future rises or falls in interest rates depending on the economy. For example, if it’s slowing down, the government might step in and reduce interest rates to help encourage growth.

On the other hand, the government might decide to raise interest rates if inflation becomes a problem.

If interest rates rise

If interest rates increase, it’s likely that mortgage rates would go up, for those not currently on fixed rate deals.

If you’re on a variable rate mortgage and you’re worried about rates rising, you may want to consider a fixed rate deal now and have the peace of mind that your mortgage repayments will not increase during the period of the fixed term.

If you’re already on a fixed rate mortgage, your interest rate would stay the same until your current mortgage runs out. You should probably stay on the deal you have.

But you’ll need to think about what to do when your deal comes to an end. Whatever you decide to do, it’s important to weigh up the pros and cons. Take into consideration any exit fees you might be charged if you move your mortgage before the end of your current mortgage deal.

If you’re worried about your mortgage repayments increasing, we have created a useful guide to help manage an interest rate rise on your mortgage.

If interest rates drop

If interest rates drop, it could be good news for you if you ‘re looking to remortgage or if you’re on a variable rate mortgage.

If you switched to a fixed rate deal before interest rates fall, then you wouldn’t benefit from any fall in interest rates.

I have a holiday home abroad, how will Brexit affect that?

UK leaves with or without a deal

This depends on where your home is.

Some EU countries have holiday home laws that are different depending on whether you’re a citizen of that country, are an EU national or a non-EU national.

You should check with the local authorities in the country where you own your home about how these might apply to you.

Find out more information about UK nationals living in the EU on GOV.uk and the EU Exit websiteopens in new window.

I have property and other assets in the EU, is my will still valid after Brexit?

UK leaves with or without a deal

Yes. Any valid will made under UK law before the UK’s exit from the EU, including wills that apply to property situated in the EU, will remain valid under UK law.

However, the effect of the will in relation to property abroad continues to be subject to the law of the country the property is in.

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