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Brexit 2 – impact for individuals

UKs banks and financial institutions have been built inside the European Union framework and as we leave the EU things may change.

Here is a list of issues that could affect your personal finance.

Credit

The banks and lenders may be more cautious and credit may be harder to obtain. Think about taking steps to improve your credit rating and securing long term mortgages and switching overdrafts to loans.

Interest rates

Keep an eye on interest rates. Even if they fall in the short-term, they may increase in the long term. This could mean you’ll be paying your mortgage longer.

Food costs

Keep an eye on your food bill as the cost of imported goods could rise. This could be because of a weaker pound and/or tariffs. Consider shopping in lower cost supermarkets and ensuring you waste less.

Fuel costs

The weaker pound could increase the cost of imported oil and gas. Keep a close eye on your utility bills and the cost of filling up your car. It could be time to look at a lower cost car, public transport or even using a bike!

Transport costs

It could be that government subsidies reduce which would mean rail, air and road transport costs may increase. Not only would this have a direct impact on your pocket it could trigger inflation.

House prices

House prices could fall so if you are thinking of moving be careful and ensure you don’t get caught in negative equity.

Investment returns

If interest rates fall then so will investment returns – this means you may need to adjust your lifestyle and more.

Tax

Keep an eye out for increases in personal tax such as the new tax on dividends. Consider a lifestyle review to ensure you manage your money effectively.

 

Image from Flickr by Freestocks.org

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