Brexit – remortgaging to avoid a rate hike.

Now that Britain has voted to leave the EU, home-owners are looking for guidance as to what will happen with mortgage rates. Borrowers want to know how likely a rate hike is, and what they should do to protect themselves.

There has been a lot of speculation as to what would happen if Britain were to vote leave, and now this has happened how are the financial markets reacting and what will happen to mortgage rates?

Many market experts are saying that mortgage rates look to be remaining steady, however we are less than 48 hours in, and there is a long road before the exit deal is agreed.

The fact is Britain’s vote to leave has led to volatility in capital markets, and this may soon start to impact lending rates.

Withdrawal of cheaper rate offers.

Going forward, it’s likely we will see lenders start to allocate smaller tranches of funding to their cheaper rate deals, and then once this funding is used up these deals will be pulled.

Simply put lenders don’t want to be caught out if the market starts to move against them. If the market moves before funding pots are used up, then it’s likely lenders will just pull these cheaper rate deals to replace them with higher rate offers.

Getting a cheap remortgage deal before it’s too late.

It’s more important than ever to keep a close eye on what is happening and review your remortgaging options. Cheap deals are on offer now but how long will this continue?

If you see a low rate offer you should act and get yourself a deal before it’s gone. Delaying will not be wise – the first 24 hours after the result saw several lenders such as Fleet Mortgages pull products.

The advice being offered by market experts is - when looking for a deal to protect against a Brexit mortgage rate rise, you use a broker. 

This is because:

• they can get the very best deal
• their relationships with lenders can get you through the application process in a far shorter time to ensure you don’t miss out

If you want to discuss your options in more detail, and would like free no-obligation advice, call us at Deal Direct.

We are here to support our clients and help them remortgage to a new low rate to protect against any rate hike.

We will act in your best interest to ensure that your home-ownership remains affordable.

For a low rate quote speak to us today. 

We provide no-obligation advice on 0800 048 8828.