Remortgage Hedging with Brexit

Yesterday saw Theresa May delay the vote on the Brexit deal. This sent the pound on a downward spiral and many left in utter disbelief. With only 108 days until Britain is due to leave the EU, it is likely that 2019 is going to see more volatility and uncertainty. So, what if you are looking to remortgage in the first half of 2019?

Many people leave remortgaging to the last minute. They end up trying to rush through the remortgage process so they do not end up on the lender's standard variable rate putting pressure on themselves, lenders, brokers and solicitors alike. Alternatively, they might simply select a new deal from the ones being offered by the current lender as the easiest option. If your mortgage is up between now and June 2019 and you are worried about rates and market volatility, what could you be considering?

One option is the 'Brexit Hedge'. The length of mortgage lenders offers vary. However, some lenders offer remortgage offers for 6 months. Therefore, if you are worried about rates and volatility, you could start looking for a deal now and obtain a remortgage offer from a lender which could secure your terms (subject to you satisfying the lenders criteria). Then, if before your current deal expires, a different deal becomes more attractive, you can decide which offer your wish to exercise. Potentially you could use this to hedge the uncertainty and volatility that Brexit may bring in the first half of 2019. You would of course need to consider the associated costs and implications, but as March is only around the corner, it may be something you wish to consider.

This article is for general information purposes only and does not constitute advice. The author does not accept liability of any errors of omissions. Readers are recommended to take professional advice regarding their own personal circumstances.