Brexit and UK Interest Rates
The UK has kept its interest rate on hold and remains at 0.75%. The interest rate has remained at this level since August 2018.
The ongoing uncertainty in UK politics is bringing uncertainty to the UK interest rate, and it’s business in general. Here are the predicted permutations...
According to PWC, if a no-deal Brexit is avoided, the UK interest rate is expected to rise in the second half of the year.
If Parliament passes the withdrawal currently proposed by Theresa May, it is predicted the interest rate could increase as much as 4 times by the end of 2020, the first coming in August 2019.
If Brexit is dragged out and delayed, there is a good chance the interest rate will rise in summer 2019.
If there is a no-deal Brexit, it is likely the interest rate will be cut to 0.25% as soon as May 2019 or earlier if an emergency meeting is held.
How does all this imapct home owners?
Depending on your mortgage product, an increase in interest rate will increase your mortgage payments. Plan ahead now.