One in 10 Brits have put off key financial decisions due to Brexit

Michael Lloyd

May 3, 2019

Some one in 10 have put off important financial decisions, such as buying their first home, moving house or spending money on home improvements, analysis by KIS Finance on a YouGov survey has found.

In London this figure rises to one in five who have delayed key financial decisions as a direct result of Brexit. Meanwhile in Wales one in six (15%) have been affected and in Scotland one in seven (14%) have postponed major financial decisions.

Holly Andrews, managing director at KIS Finance said: “We’ve seen a definite increase in the demand for rebridging finance as properties are not selling as quickly.

“We are also doing more remortgages now than we were before due to people choosing to stay put and sit out Brexit uncertainty.

“To date, we’ve not seen any rate changes related to Brexit on the mortgage front, but with bridging, the loan-to-value limits are dropping with some lenders and underwriters being more cautious with their lending decisions.

“The longer the whole Brexit debate continues the more significant the problems for the finance sector will become.”

Those aged between 25 to 49 report being the most affected by delaying major spending, with 16% claiming their decisions are delayed due to Brexit.

With the average age of a first-time home buyer in the UK being 30, six years older than the average in 1980, delays for this age group could make getting on the property ladder even harder in the future.

A 2% fall in house sales in 2019 has been predicted by the Office of Budget Responsibility and the Royal Institution of Chartered Surveyors described the outlook for house sales in London as the most negative for the last 20 years.

The research also found lenders are tightening LTV criteria making borrowing more difficult and the demand for bridging loans has been increasing as a way of weathering the current storm.

Some 61% of those who confirmed they would vote in a referendum on remaining in the EU or leaving with Theresa May’s deal, and currently have a preference, stated they wanted the UK to remain in the EU.

The survey also asked if they would rather remain in the EU, accept Theresa May’s deal or exit the EU with no deal.

Given these three choices 53% still wanted to remain in the EU, but three times as many people confirmed they would vote for a no deal exit rather than accept the terms negotiated by the government.

Clearly people are looking for an end to the matter even if this means taking the drastic step of leaving the EU without a negotiated deal, rather than accept the compromise of the current deal on the table.

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