Remortgaging after the Brexit vote

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    Remortgaging after the Brexit vote

    My current fixed deal comes to an end in November. I'm torn between a tracker and a fixed.
    With Brexit and possible article 50 coming in 2017, if i do a 2 /3/5 year tracker, i face the risk of potential interest rate hikes depending on how things are handled.
    If I go with a fixed, i'm wondering how long i should fix for 2/3/5 years?
    I have 40% deposit so payments are quite low. It's just i have a low appetite for risk, but at the same time, I think interest rates will likely drop upon the triggering of article 50, but you just never know.

    What do you think?

    #2
    Drop again - we're already pathetically low at 0.25%.

    Personally I'd go for a decent fix with a mortgage company who has a low revisionary (is that the word?) at the end of the fixed rate. Godiva are pretty good - when I come off of a fixed rate, I usually roll over onto another fixed deal without any additional fees.

    Comment


      #3
      On one side you will have a rise in inflation due to hike in price of goods imported in EUR and USD term, due to weaker £...

      ...BUT, is an "unhealthy" inflation, is not due to economic growth hence rate rise, it is the opposite, most probably recession or very weak growth.

      Rate will not be hike for a very long long time, a bit of Japanese scenario.

      Stay floating/traker in confidence, at most the central banks are doing very boring "verbal" intervention (like the FED), but that it is!

      Comment


        #4
        I have found that most clients for whom I have undertaken a review of their portfolios now feel that interest rates have gone as low as can realistically be expected to go and have elected to go onto 3 or 5 year Fixed Rates particularly as it is generally expected that the present rental stress calculations will not be in place during 2017 and beyond therefore the maximising of the release of equity using longer term fixed rates and current stress rates offer opportunities which will not be available going forward.

        No one can predict what will happen post Brexit but even had we remained within the EEC the implications of the Basel 3 regulations would have impacted on the rental stress calculations and general affordability so my advice is take advantage of what funding opportunities presently exist before it is too late.

        Comment

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