How will Brexit effect Loan Industry in the UK?
The Loan Industry in the UK is about to feel the effects of Brexit. Irish and UK banks may be unable to fund or participate in some loans if they do not have licenses recognized through a European passport. This passport is mandatory because it allows them to provide loans and take security.
With so much still up in the air, let’s have a look at how Brexit could impact UK loans services. Also, find out what are the possible outcomes that could be on the horizon.
What impact would Brexit have on the UK loan industry?
The London Loan market is currently the largest global centre for providing mortgage, business and personal loans. Every year itdistributes a substantial amount of loan both into and out of the UK.
Possible post-Brexit Impacts:
- The main challenge for Loan Companies in London arising from Brexit is that on leaving the EU, UK loan providers will lose the right to conduct business in the EU.
- Impact on Interest rates: Brexit is likely to have an effect on interest rates. Though it’s not clear in which direction but surely it will bring noticeable changes in the working of loan policy in the UK. Last time, we saw a decline in the interest rates and a hike in the base rate. However, your rates of return are fixed at the point you make your investment. So, whichever direction rates move, you will not be affected at all.
- Impact on Property: A hard Brexit may also fall housing prices in the UK. People will benefit from this fall as they will need less mortgage to buy a property in London, UK. The lower the mortgage amount, less are the interest rates. Adversely, it will affect the business of loan companies in London.
- Rise in Electricity/Gas Prices: Gas and electricity are expected to rise because of a fall in the value of the pound against the euro. A sudden change in such living expenses will put a strain on the pocket of maximum UK citizens. Eventually, taking a personal loan from local loan lenders would become the ultimate solution for them. Although it would not be an immediate disruption, the risk would arise only if the UK exits from the EU’s Internal Energy Market.
- Business Persons who import goods from the EU to the UK will also be affected by the Brexit process. As a member of the EU, UK firms don’t pay for taxes or have custom checks on goods. But after Brexit UK businesses will need to apply the same processes to EU trade that apply when trading with the rest of the world. So, to prepare your business with the post-Brexit effects, a business loan is the best choice.
Obviously, we can’t make any guarantees. Capital is always at risk when dealing with Brexit like processes. However, we do hope the above clarifications allay any concerns you may have regarding Brexit or UK Loans.
London Loan Company always ensure people have peace of mind when they deal with financial difficulties. It is very much in our interest to take excellent care of them by providing all types of loans – business, personal and mortgage at minimum interest rates. You just need to fill our application form online and our agent will give you a callback as soon as possible!