Homes, property and mortgage changes after Brexit
Now that the UK has left the EU, we’ve put together some guidance to help you understand what has changed, what hasn’t changed, and what will change in the future about homes, properties and mortgages.
Will mortgage interest rates rise and what can I do about it?
Future interest rates will rise and fall depending on several factors that could impact the UK economy. For example, if the economy’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 re-mortgage 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 the UK leaving the European Union affect that?
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.ukopens in new window
I have property and other assets in the EU. Is my will still valid after Brexit?
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 regarding property abroad continues to be subject to the law of the country the property is in.
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