Today has seen a surprising and monumental decision for the Leave camp who have won the EU Referendum. Things are never that simple however, so there will no doubt be a period of uncertainty, with even the possibility of a re-vote thrown in.
In the meantime, Andrew Montlake, Director at Coreco comments on the situation at present :
“There will be a lot of speculation around the result of the referendum, but as with any change and uncertainty it is about keeping calm heads.
“Whilst there is concern and we enter unchartered waters; life, business and mortgages continue.
“All we can do as trusted brokers is make sure we continue to advise and reassure our clients, remaining professional and not giving in to some of the more hysterical reactions.
“Many of us in the mortgage industry started businesses or survived in far more perilous conditions and we have every faith that there will be opportunity and we will thrive going forward.
“Eyes will be focused on the Bank of England and their reaction where interest rates are concerned and in the short-term we could see a Base Rate cut. This means that mortgage products should continue at their current low rates and there is much for borrowers to take advantage of.
“It is important for buyers to remember why they are purchasing a property; in most cases it is a home and should not be looked at as a short-term investment. It is too early to speculate about house prices and whilst there may be a slight easing of prices the underlying fundamentals of people needing a home and the current lack of supply remain.
“We may see some looking to sell quickly, especially some landlords, which may contribute further, but for many the long-term prospects for price growth still look strong. The most affected market will no doubt be Prime Central London especially properties above the £2m level which has been slow for some time now.
“If sterling continues to weaken however, we may well see foreign investors looking to take advantage of this market once more.
“In the lending market, banks are much better capitalised and having repaired their balance sheets over the past few years will still be in the business of looking to lend, so for the most part there is no reason to think that it will not be business as usual. The Bank of England have also been very clear that they will do whatever it takes to assist where necessary.
“Much will be up to the new leadership to steady a divided country and whilst the short-term road will be rocky, there is no reason to believe that the future will not be bright.”