The result of the EU referendum on June 24th could have an unexpected positive outcome for those looking to take out a mortgage in the near future. The potential removal of European regulation could make it easier for you to get a homeowner loan once the UK has left the EU.
According to This is Money, new EU mortgage broker rules were brought in last year that came with a few side-effects for a number of homebuyers, such as the fact that some British lenders stopped lending to people who work for international companies and are paid in foreign currencies.
Banks and building societies are now required to warn people about currency movements and protect them by allowing borrowers to convert loans into different currencies – which some lenders have said means it’s not cost-effective to offer loans.
However, it’s worth bearing in mind that some of the EU rules and regulations are similar to what the UK already has in place after changes were brought in following the recession to further protect borrowers from risky lending.
Chief executive of trade body the Association of Mortgage Intermediaries Robert Sinclair said: “Right now, nothing has changed. The rules around affordability were part of the Financial Conduct Authority’s response to the financial crisis and were not created by the EU.”
It’s also possible that the government could cut interest rates to help protect the UK economy post Brexit, which could mean that mortgages become cheaper in the future. Looking out for a cheaper five-year fixed-rate mortgage would perhaps be wise so you can protect yourself against interest rate volatility.