After all our hard work to achieve a return to a buoyant mortgage market, we’re back in uncharted territory
When David Cameron announced there was going to be a referendum, I feared Brexit talk would drag on for years. It looks as if I will be right.
While data received from companies suggests that the vote has had little negative effect so far, a worrying report in The Times says MPs are being warned that a ‘hard Brexit’ could cost the Treasury up to £66bn a year in lost tax revenues.
Talking constantly about Brexit is not helping the mortgage market to move forward, but we are relying on a handful of politicians to make sure our exit is managed properly. If they make a mess of the negotiations, we will all be in big trouble.
Over the past few years, many brokers have done very well in helping EU nationals to secure mortgages, and the lenders have exposure to hundreds of thousands of mortgaged properties owned by European residents.
From a broker’s point of view, the advice process remains the same. If clients can afford to take the risk, and they earn enough money, they can secure a super-cheap two-year fix. If they have a family and need to protect their finances, they can lock in to a longer-term deal. Life and income protection policies also play an important part in the advice process.
Clearly the Brexit negotiations will affect us all. However, I do not like the thought that we will still be discussing them in three, five or even 10 years’ time.
After all of the hard work to achieve a return to a buoyant mortgage market with incredibly good rates and improving acceptance criteria, it seems like we are once again moving into uncharted territory. Brokers will need to clear even more hurdles to stay on track.
Aaron Strutt is product and communications manager at Trinity Financial Group