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Here’s a quick round-up of relevant news items following the recent EU referendum. It covers property, stocks and shares, insurance and mortgages following the decision to leave the EU. 

For more on any of these news items, or if you are concerned about how your financial plans may be affected, get in touch with us (http://www.logicfinancialservices.co.uk/talk-to-us/).

 

£6bn property funds close the doors
Standard Life, M&G and Aviva have all halted dealings in their commercial property funds because of the prospect of declining property values in the wake of BREXIT, says the Telegraph.  The effect is strongest in London, where demand for offices is expected to fall significantly. Funds have used up a lot of the cash they held, and now have to defer giving money back to investors who want to sell until they can be sure what the real value of property is.

BREXIT could bring big insurance changes
The premiums for many types of insurance could change after BREXIT, says the Financial Times. Travel insurance in Europe could get more costly if reciprocal healthcare agreements are scrapped. The abolition of ‘gender-neutral’ pricing for insurance, introduced in the EU in the face of fierce opposition from the UK insurance industry, would see men paying more for car insurance and women getting lower annuity rates.

Shares to weather the storm
Stock markets have been a roller-coaster since the BREXIT vote, says the Times, but people still have to eat and buy toothpaste and heat their homes. Many of the funds chosen by experts benefit from investing in companies with steady repeat sales. Stockbrokers have also reported a wave of buying of shares by bargain-hunting individual investors.

To fix or not to fix?
Fixed-rate mortgage deals at around 2% for five years were available pre-BREXIT and are still on offer, says the Times. But the question is, will rates go even lower given the Bank of England’s stated intention to support lending, and the likelihood of a cut in interest rates if the economy weakens? Experts have different views but there seems little likelihood of a sharp rise in mortgage rates. On the contrary, if the number of property purchases falls, competition among lenders may increase, leading to even better offers.

What about property prices?
Property prices in London are most vulnerable post-BREXIT, says the Times, thanks to the big role of foreign buyers. They may be put off by the uncertainties, but on the other hand the fall in the £ has effectively cut prices by about 10%. The rest of the country is likely to be less volatile, mainly because of the strong demand for housing, and the supply of low-cost mortgages is unlikely to dry up.

For more on any of these news items, or if you are looking for a bit of help with your financial plans, get in touch with us (click on this link http://www.logicfinancialservices.co.uk/talk-to-us/)