Firstly, let us make one thing clear. The 29th of March may loom large for political reasons, but here at Foursquare Financial we are not for one minute panicking about any impending doom in the mortgage market. The truth of the matter is that yes, there may be some rate rises over the coming months, and yes, there may be a little uncertainty in the market for a while whilst things settle down, but there really is nothing to worry about. Life will go on, and like in so many other walks of life outside of mortgages, there will still be a need for people to move home, remortgage and invest in property.
That being said, if you are the sort of person that believes some of the tabloid hype about what a post-Brexit economical climate looks like, there are steps you can take now and in the next 2 months to future proof your financial needs. So below, this blog gives you some top tips to help you in these times, without sparking any political debate or discussion.
1. Get ahead of the curve - When looking to remortgage, lenders often provide you with a mortgage offer that is valid for 3 or 6 months. That being the case, if you have a mortgage which has a fixed rate end date from now until the middle of July, you are in range to discuss securing a new product now in todays market at todays rates. Also, if you have a mortgage product due to end by 29th September, you can discuss securing a new product right up until the date we exit the EU.
As we said previously, we are not expecting huge rate rises on the 30th March, however, if you are concerned, we can help you allay your fears by looking to secure a new product early, which will give you the confidence to budget out your next 2, 3 or 5 years.
2. Don’t fix long term just because a newspaper told you to – We’ve mentioned this in previous blogs. Your length of product shouldn’t be determined by how we think the economy will react over the next few years. Quite simply, it is impossible to tell what will happen to interest rates over the next five years. Your product should be selected based on the things you can control, for example, what financial commitments become due over the next few years? Are you likely to start or extend your family, meaning a need for a financial review or moving home? Does your job give you the opportunity to increase your income meaning affordability will be different in the short, medium or long term? Do you have children of late school age who may go on to higher education in the next few years? Are you starting to plan out your retirement and need to map out the last 5 to 10 years of your mortgage to match your plans?
All of these questions need to be taken in to account when selecting your next mortgage product. So whilst many of the newspapers may be telling everyone to fix for as long as possible, that may not be the best advice for you and your family. Engaging with a mortgage broker like us, we will help you identify the best product to meet your current needs whilst taking in to account your future plans. If that means a longer term fixed, that’s what we’ll do. But only because it fits with your circumstances.
3. Don’t panic! – Don’t make rash decisions. If you are buying a home to live in, that house will still be there for you and your family on 30th March. If you are currently letting a property out, it will still be let out on 30th March and will more than likely still represent a good investment. If you are thinking of moving, but are holding off to see what happens, don’t!
The truth of it all is that life goes on. People still need good quality housing and the next generation will still want to buy or rent your property. Therefore, don’t let Brexit hold you back!
So there you have it. You may read lots over the next 2 months, and whilst you may have differing views on whether we should or shouldn’t leave the EU, the financial forecast is as follows:
Don’t put your life on hold, take control of your own financial destiny, and above all else, get some advice from a qualified adviser…
For independent, whole of market advice that isn’t influenced heavily by the red top tabloids, get in touch here.