The dust is settling on the biggest political decision in decades. But what do you do in the meantime? How about taking these 5 steps to help you and your property.
By Laura HowardJune 27, 2016 16:00
The nation has voted to leave the European Union. But whether the result matched your own vote or not, why not take some positive action when it comes to your property? Taking these 5 steps certainly won't do any harm.
1. Switch to a better mortgage deal
Dig out your mortgage paperwork and remind yourself of the rate you are paying. Look also at any tie-ins (the time during which it will cost you to leave) that may apply.
If you are on your lender's expensive Standard Variable Rate (SVR), think about switching to a cheaper deal. It doesn't have to be from the same lender as being on the SVR means it's unlikely you'll be tied in, so make sure you shop around.
You may decide to opt for a fixed rate deal which which will provide security of payments for a set period of time, even if interest rates rise.
2. Pay off what you can
No one knows exactly what will happen to house prices post-Brexit. But one thing's always for sure – the less you owe against your home the better.
If you have savings sitting in a low interest-earning savings account, it could make sense to use that cash to pay a chunk off your mortgage instead.
Even if you are tied into your current deal, most lenders allow overpayments of up to 10% a year. Call your lender and find out where you stand.
3. Keep your cool
Any knee-jerk reaction to sell up your property on the back of the Brexit could be foolhardy. Even if the ripples of uncertainty take a little while to calm, over the long-term, the value of property has risen. Your primary concern should be that you can comfortably afford the monthly mortgage repayments and bills on your home – not what your home is worth.
4. Make the most of the home you have
Not even leading economists can making predictions but, even if life outside of the EU impacts your finances, there are measures you can take to ride out the storm.
For example, under the Government's Rent a Room scheme, you can now earn £7,500 a year in rental income without paying tax on it.
And, if you need more space but can't afford the move upwards, you could stay put and extend or improve your home instead.
5. Bear in mind that house prices are relative
If you need to move for life reasons, don't worry about the outcome. Even if you achieve a slightly lower price for your own home, chances are you'll be charged less for the next one too.
Irrespective of the state of the housing market and the EU, a good estate agent will market your home as widely and effectively as possible – and get you the best price. Just make sure you choose a good one.