Whether you were in or out, the decision has been made and the UK decided to leave the EU but where does it leave us right now and what is the impact to Interest Rates?

Interest rates were already at a record low of 0.5% which was held for 7 years

Last week, the Bank of England reduced interest rates to 0.25% and for borrowers, this is a welcome move, especially those on tracker mortgages. There are indications that this could drop once more by the end of 2016 which could see interest rates set at 0%

Mark Carney from the Bank of England reduce rates to 0.25%

The monetary policy committee voted unanimously to reduce rates as a boost to borrowers but it has an immediate impact to savers, who hoped for a rise, not a fall.

In the long run, who knows what’s going to happen. The UK has a lot going for it and hopefully the media start reporting a more positive angle, as we move forward into these unchartered waters. The hope is, we don’t talk ourselves into another recession, which is the fear of many.

For those borrowing money, lower interest rates is a good thing. Now might be a good time to borrow money for a home extension, refurbishment project or purchase you maybe previously couldn’t afford. As always, only borrow what you can afford.

Arrow Loans are here to help those looking to borrow money. We provide UK Homeowner Loans and you can apply via our form here.