There is so much uncertainty regarding Brexit that it is impossible to know what the effects will be in a year’s time from now. Any predictions on what happens years down the line are mere guesses.
Without succumbing to any of the fear-mongering on both sides of the debate, there are some things you should be doing to prepare. The effects are already being felt financially just by the fact that nobody even knows if Brexit will happen nevermind if it actually does.
In this article, we will lay out some tips that will help you prepare your finances in any case. Whether it happens or not, you can come out the other side in good financial shape.
Time to remortgage
Interest rates are set to record low numbers in an effort to loosen monetary policy. You don’t have to be in the market for a new home to take advantage of these rates.
This is a great time to remortgage your property. Especially if you are paying a tracking rate mortgage. Lock in a fixed low rate for the rest of your mortgage by refinancing now.
You can calculate remortages by using a website that gives you the lenders’ rates at a glance to see how much you will save by remortgaging.
If you are thinking of selling, then this is a good time as the property market has remained strong in the face of Brexit against many predictions of collapse.
Take out a bond
Though rates of 2% to 2.4% hardly inspire confidence, putting your money in fixed rate bonds can give some peace of mind.
The falling pound makes holding on to cash look less attractive all the time. Though at the time of this writing, it has rebounded to its highest point in the last seven months, the future is hard to predict. It doesn’t seem as though the pound can gain on the euro and dollar if there is a hard, no-deal Brexit so bonds offer a measure of safety.
Stock up on essentials
Even in an orderly Brexit, there will likely be either shortage, or higher prices, or both. You should stock up on things you know you’ll need.
This is especially true of medication. In the event of a Brexit, it is almost a certainty that the price of drugs will increase. Ask your GP to increase the amount of your prescription you can have to save money later.
Even nonprescription drugs may see an increase, so better to stock up while the prices are low.
Certain foods may see a price increase or shortage, like tins of tuna and tomatoes from Italy. Non perishable items that can be stored indefinitely should be purchased now to save money later.
Tweak your pension
It may seem scary to muck about with your pension, but there are some things you should consider. If you think the economy will falter after Brexit, then moving your pension into overseas shares should be a consideration.