Why mortgage rates will rise with Brexit

How Brexit would affect house prices and homeowners is one of the big questions in the build up to the UK’s EU referendum vote. George Osborne has said that mortgage rates will rise if there’s an Out vote. Meanwhile, the Bank of England’s governor, Mark Carney, is currently reviewing the possibility of an emergency interest rate cut in the event of a Brexit vote. The two outcomes would seem to be contradictory, but this is a feasible outcome if Britain votes to leave the EU.

• Primary Source

ESO: In Focus: Brexit - The United Kingdom and the European Union http://www.europeansources.info/record/brexit-the-united-kingdom-and-the-european-union/

ESO: Background information: Chancellor: Leaving the EU would be a one way ticket to a poorer Britain http://www.europeansources.info/record/speech-chancellor-leaving-the-eu-would-be-a-one-way-ticket-to-a-poorer-britain/

The Telegraph, 16.05.16: Why I would be celebrating if Brexit led to lower house prices http://www.telegraph.co.uk/business/2016/05/16/why-i-would-be-celebrating-if-brexit-led-to-lower-house-prices/

Fitch Ratings: Press Release, 16.05.16: Fitch: 'Brexit' Would Increase Downside Risks to EU Sovereigns https://www.fitchratings.com/site/home/pressrelease?id=1004519

The Guardian, 13.05.16: Brexit would prompt stock market and house price crash, says IMF https://www.theguardian.com/business/2016/may/13/imf-warns-stock-market-crash-house-price-fall-eu-referendum-brexit

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