Mortgage rates low and house prices steady six months after Brexit vote
It is now over six months since the European Union referendum resulted in a Leave vote. The immediate aftermath of Brexit was economic uncertainty with some experts forecasting high interest rates and steeply rising house prices. However, interest rates remain low and house prices are stable.
The consumer group Which? reported in December 2016 that the number of mortgages available has risen. Between June and December 2016, there were 5,502 mortgage deals available. This compares to 4,736 at the beginning of June, marking a 16% increase.
Mortgage interest rates have gone down since the June EU vote. At the beginning of December 2016, the average mortgage interest rate was 2.81%. In June 2016, the average was 2.99%. Five-year fixed-rate mortgage interest rates fell from 3.2% in June to 3.12% in December 2016. The average rate for two-year fixed-rate mortgages decreased to 2.74% from 2.52% during the same period.
Many experts speculated that house prices would rise sharply after the Leave vote, but they were mistaken. Between June and October, the average house price rise was 0.5%, though house prices have risen by more than this is some areas of Britain.
With Which? noting that there are many mortgage deals available, it’s worth remembering that a mortgage broker can help find the best deals for borrowers, and also advise on the various mortgage protection insurance options available to protect the mortgage payments if the borrower is off work through sickness or accident.