16 May 2016

David Cameron and the rest of the Houses of Parliament have been making a lot of television appearances discussing the implications of ‘Brexit’ recently.

With the news being filled with “Will we? Won’t we?” arguments and juvenile arguments between Boris Johnson and Cameron, Andrew Milnes of Mortgage Q discusses what ‘Brexit’ actually means.

What is ‘Brexit’?

No, it’s not the latest brand of cereal.

‘Brexit’ is the decision on whether the UK decides to leave the European Union or not, and after weeks of public ‘selling’ by many politicians, a public vote to decide the outcome of the decision is to be held on the 23 June.

Do we want to leave the EU?

Some do, some don’t. Cameron wants the UK to remain part of Europe, but other senior government members, including those within his own party, are calling for independence.

Leaving the EU could affect the economy, how would it affect me getting my mortgage?

The truth of the matter is that, until it happens, nobody can be completely sure. The general consensus is that existing mortgages would be unaffected if we were to leave.

However, once left, the UK would be able to form its own regulation, meaning the government could change lending rules when they like - though it should be noted that this would take several years to take hold.

Put simply, coming out of the EU will not mean that people will stop buying houses. People will still buy homes, lenders will still supply mortgages.

What about my mortgage rate?

As before, a certain answer is hard to say, but there is a chance that leaving the EU could lead to a rise in rates, especially in the opinion of Bank of England governor, Mark Carney.


If the UK was to leave, there would be an indeterminate period where our trading relationships with the rest of the continent would be uncertain, leading to investing in the UK being seen as risky by investors.

This would weaken the pound which could lead to the Bank of England increasing interest rates from their current record lows to encourage spending from within the UK, instead of relying on import/export trading.

Whether we vote to stay in or out of the EU remains to be the talking point right up until voting day, but with the uncertainty around what would happen if we were to come out the union, it is imperative that you seek advice from a professional mortgage adviser if you are considering your next move within the next few months.

The Property Ombudsman
Association of Residential Letting Agents
Association of Residential Letting Agents
On the Market January 2015
Safe Agent Logo
Martin House Logo