What Brexit it means for your personal credit loans

Personal credit, loans, wages; what Brexit means for you!

June 23rd 2016 will go down in history as one of the most significant days ever for this country. By a narrow majority Britain voted to leave the European Union. Right from the start the referendum was surrounded by controversy. Wars of words constantly took place that ranged from confusing to downright malicious, and the fighting still continues in some circles. Politicians and other high profile figures chopped and changed their views and allegiances and, for some, their careers in public life did not survive Brexit.

But amidst all the noise, many people fear for the future. Will Brexit mean a bright new future for an independent Britain, will it all be a complete economic disaster along the lines predicted by so-called Project Fear, or at the end of the day will not make much difference at all? Who can you trust to give you the right information?

We are all currently in a new and unfamiliar situation. As the Brexit process kicks in we will be navigating largely unchartered waters. Therefore there is a lot of uncertainty around and some things will only become clear as we move further forward. But here are a few pointers as to what we at Simple Fast Loans believe may happen:

The Pound
The value of the pound has been steadily falling since the Brexit vote. If this continues then this will mean that it will be more expensive to buy goods from other countries and cheaper for them to buy goods from us – meaning our exporters make less profit. Both of these could lead to inflation (higher prices) and mean that we end up with less money in our pockets.

Interest Rates
The Bank of England recently cut interest rates to 0.25% to support the economy. If you have a mortgage this is good news as it means that mortgage rates are likely to come down and cost you less per month. However it also means that if you have a savings account the interest rate on that may well also be cut meaning that you get less interest on your savings.

The Housing Market
Recent research – by removals firm Bishop’s Move – indicates that the housing market has seen a slight slowdown post the Brexit vote, with around one in eight buyers and sellers cancelling their transaction altogether. However it is unclear as to how house prices will go. If the slowdown means a general drop in demand then prices could fall, but if it is a temporary halt while people “wait and see” then there may be little impact.

Credit and Loans
So far there has not seemed to be any adverse effect of the Brexit vote on personal credit loans. There are good rates around – even though personal credit loan rates are not linked to interest rates as much as mortgages. Nor does there seem to be any clampdown on personal lending. So if you have any concerns about how things will go as the Brexit process starts rolling then now might be a good time to consolidate your finances.

Wages and Taxes
Before the referendum some experts predicted that Britain leaving the EU would cause unemployment to rise and wages to be lower. There were also fears of tax rises to enable the government to maintain its spending despite a slower economy. However at this stage – with Britain in the EU for at least another two years – it is impossible to have any kind of certainty about this.

Benefits and Pensions
If there were to be slower economic growth outside the EU this could lead to a fall in government income, leaving it with less money to spend. Potentially this could lead to cuts in various areas of spending, possibly impacting on tax credits and benefit payments. Also during the referendum campaign, the then prime minister David Cameron said that the annual increase in state pensions could be threatened by a Brexit. However – as with wages and taxes – this all remains to be seen.

The overall message is that we are still in the very early days of Brexit. So far nothing drastic has happened and whilst the above guidelines indicate what could potentially happen there is nothing that is certain. However, as mentioned in the Credit and Loans section above, this could be a good time to try and get your financial house in order so that you are prepared for any changes that do arise over the next couple of years.

If you are currently in the position of recovering from previous financial problems you may want to take out a personal credit loan to consolidate and pay off debts but may be worried that an adverse credit rating may count against you. Fortunately there are lenders around to help in these circumstances, such as Simple Fast Loans. All our employees are passionate about treating customers fairly and delivering exceptional customer service. We know it can be tough to loan with a CCJ or bad credit, or if you’reself employed but we’re here to help.

Our personal credit loans are available over a period of 18-36 months. We are committed to providing straightforward, transparent and same day cash loans from £250 – £5,000. You can make loan repayments on a weekly or monthly basis and are welcome to settle your loan agreement early.

So if you want to sort out your finances in light of the Brexit vote then why not get in touch today to see how we can help?