How could Brexit impact borrowers and savers?
With the date for Brexit just around the corner, the detail around the UK’s withdrawal from the European Union remains uncertain.
While the political process continues to play out, borrowers and savers will want to know how best to protect their finances.
If you’re a saver, whatever the outcome of Brexit your savings will continue to be protected up to £85,000 under the Financial Services Compensation Scheme, a UK-run and administered scheme with compensation limits set by the Bank of England’s Prudential Regulation Authority.
If you’re a borrower with a mortgage, the outlook for house prices remains largely unchanged.
Nitesh Patel, Yorkshire Building Society Group’s Strategic Economist, says:
We believe that the fundamentals of the housing market remain the same regardless of how Brexit plays out – in principle, high demand and limited supply supports property prices.
The employment rate is at the highest level since the early 1970s, and we’re currently seeing an improvement in household finances with wage growth outstripping consumer price inflation which adds to overall economic strength.
Nick Quin, Yorkshire Building Society Group’s Public Affairs Manager, adds:
We’ll continue to monitor political developments closely, and prepare for all outcomes.
We remain a domestically focused, strong financial institution. We’re heavily regulated and take a prudent, long-term approach to our lending and activity.