Information from the Building Societies Association

Building societies are UK-based firms whose business is overwhelmingly UK domestic.  Until or unless a customer (member) is contacted by their Society they can be assured that their products, services, access and protections such as the Financial Services Compensation Scheme are not affected as a result of the UK’s departure from the EU.

Mortgages - Your Questions

I am part way through a mortgage application, will a no-deal Brexit make any difference to it?

Provided that your personal-circumstances don’t change - for example your job/income, and if you are buying a home the purchase proceeds, your mortgage application should not be affected by a no-deal Brexit.   

Is a no-deal Brexit going to make my mortgage more expensive?

If you already have a fixed rate mortgage no. 

More generally, many factors affect mortgage rates including the Bank of England Bank Rate (often known as the Base Rate); the cost of funds, competition and the economy and the effect that it can have on the mortgage market, as well as your personal circumstances (how much you want to borrow & the loan to value).  It is possible that rates may be affected as a result of a no-deal Brexit.  If you are concerned it is worth talking to your lender or to an independent mortgage adviser.

I am worried that I may not be able to pay my mortgage?

If you are concerned that you may not be able to pay your mortgage the best advice is to get in touch with your lender or an independent, free debt adviser.  The sooner they are aware of a potential difficulty the more options to help you may be available. 

With National Debt-line, the BSA produced a guidance leaflet which can be found at:

https://www.bsa.org.uk/information/publications/research-and-reports/can-t-pay-your-mortgage

This also provides information of other third party organisations that you can contact if you have financial concerns.  

I bought my house in the UK when I was living here, but have subsequently moved to one of the EU 27 countries.  Does Brexit make any difference to my mortgage agreement?

It is to be hoped that you won’t see much change, however this area is subject not to EU law but to the individual national law of each of the EU 27/EEA countries, which makes it a little more complex. 

The important thing is that you need do nothing until and unless your lender makes direct contact with you.

Is the value of my home going to crash because of Brexit?

Property prices are largely driven by supply and demand and markets are often localised.  Property prices have been subdued in recent months, but there are no indications of anything close to what you might call a crash in prices.

Savings - Your Questions

After Brexit are my savings still covered up to £85,000 by the Financial Services Compensation Scheme?

FSCS protection for UK-based customers of UK authorised firms will not change as a result of the UK leaving the European Union (EU), regardless of whether the UK leaves the EU with or without a deal.

For savings accounts the amount remains £85,000 for each individual in a single banking entity.  Please be aware that as today some banking entities may include a number of separate brands e.g. Yorkshire Building Society includes Chelsea Building Society and Family Building Society is a trading name of National Counties Building Society.    

You can get the latest information from the FSCS here: https://www.fscs.org.uk/about-fscs/media-centre/brexit/

I opened my savings account with a building society when I lived in the UK but I now live in the European Union am I still covered by the FSCS?

FSCS protection does not depend on where you live, but on where the bank, building society or credit union holds your account. If a deposit is held by a building society in the UK, FSCS protection applies.   

If your money is held in one of the few building society operations in Gibraltar or the Channel Islands you will be covered by their specific depositor schemes. 

You can get the latest information from the FSCS here: https://www.fscs.org.uk/about-fscs/media-centre/brexit/

I took out my savings account with a building society in the UK when I was living here, but have subsequently moved to one of the EU 27 countries.  Will Brexit make any difference to my account?

You need do nothing until and unless your building society makes direct contact with you.

What ultimately happens will be subject to the individual national law of the EU 27/EEA countries, and is therefore a little more complex. 

If there is a no-deal Brexit should I get out extra cash?

There should be no reason why cash above and beyond the amount that you would normally withdraw will be needed. 

Staying safe from scams

During a period of uncertainty there is a greater risk of scams. Here are some tips from the FCA to help you protect yourself:

  • be wary of all unexpected calls, emails and text messages
  • a genuine bank or organisation will not ask for your PIN, full password or to move money to another account
  • never give out your personal or financial details unless it’s for a service you want to use, and where you trust the provider
  • don’t be pressured into acting quickly – a genuine bank or financial services firm won’t mind giving you time to think
  • always double-check the web link and company contact details in case it’s a ‘clone firm’ pretending to be a real firm
  • if you get an email, expand the pane at the top of the message and see exactly who it has come from – if it’s a scam, the email address of the sender may be filled with random numbers or be misspelled
  • beware that fraudsters can ‘clone’ these email addresses to make their emails seem genuine

You can find additional information to stay safe at  Take Five

Additional sources of information for consumers

The Government, FCA and organisations such as the Financial Services Compensation Scheme have provided information for consumers:

UK Government - https://www.gov.uk/government/publications/banking-insurance-and-other-…

FCA - https://www.fca.org.uk/consumers/how-brexit-could-affect-you

Financial Services Compensation Scheme - https://www.fscs.org.uk/about-fscs/media-centre/brexit/

MoneySavingExpert -  https://www.moneysavingexpert.com/family/brexit-what-it-means-for-you/

New Saver Enquiries

0345 600 0585

New Mortgage Enquiries

0345 600 4085

Existing Member Enquiries

To talk to us about an existing savings or mortgage account, contact your local office

Find your local office

Lines open 9-5 Mon to Fri (10-5 Wed) and Sat 9-12. Calls may be recorded and/or monitored.