The results of yesterday’s referendum were known early this morning, and it is fair to say many people were surprised by the outcome. Immediately the speculation about what the result may mean for the UK economy began. Throughout the campaign both sides have speculated about what may happen; but the fact of the matter is no one can know for sure as this is completely uncharted territory for everyone. What is done is done and the country must now move forward positively and constructively. The transition is going to take in excess of two years; giving time for negotiations with the EU and other countries to take place, minimising the risk sudden shocks to the economy.
Mark Carney, Governor of The Bank of England, took a very measured view of the outcome; pointing out that there will be no immediate change in the way people or goods can move between countries or the way services can be sold. Whilst there is inevitably going to be a period economic volatility and adjustment following the decision; particularly with the exchange rate and stock market, the Treasury and The Bank of England are well prepared for this. A huge amount of contingency planning has taken place to prepare for this eventuality and The Bank of England has already confirmed that it will “not hesitate to take additional measures as required.”
The UK now has a much more resilient financial system which has been significantly strengthened over the last seven years. The capital requirements of the major banks is now much higher than it was during the last recession and they are stress tested for far more drastic scenarios than those being faced at present. Additionally, the Bank of England has contingencies in place to ensure and maintain financial stability and responsibility.
In terms of the UK housing and mortgage markets; it is never possible to accurately predict how these may be affected, but it is likely that any changes will be gradual and comparatively minor. As far as One 77 Mortgages is concerned it is very much business as usual. If you would like to discuss your current mortgage or protection situation please feel free to call us on 01225 667177 or email firstname.lastname@example.org