How the vote to leave the EU will affect your holidays, passports and mortgages
House prices to go down, with better market for tenants as fuel prices are predicted to skyrocket
Now that Britain has voted to leave the EU, we are sailing into the unknown.
Even though our national security won't change, there will be a lot of changes for you and your family.
At the moment, nothing will change.
Negotiations to leave the EU will only begin once Article 50 of the Lisbon Treaty has been declared.
This sets the clock on how long negotiations can go on for.
It is expected that this will not begin until after the Tory leadership election in the autumn.
Most of the changes will start to come into force once Britain formally leaves the EU in two years time.
Flights
The Open Skies deal used to mean that Brits could enjoy continental travel at rock bottom prices.
This agreement will have to be renegotiated in the future and it is likely that it may get more expensive to fly abroad.
It is possible that aviation fuel may also increase, but experts are hopeful that there won’t be any short term effects from Brexit.
Holidays
In the EU, we were able to travel freely among the countries who were members without needing a visa.
It is unlikely that this will change as we already enjoy visa-free travel with countries who aren’t members of the EU.
At the moment, it is more expensive to buy foreign money for your holidays.
The pound spectacularly crashed then rebounded over the course of yesterday, but our currency is still weaker than before.
Before Brexit, Brit holidaymakers were able to get 125 euros for £100.
Now, those going abroad can only buy 120 euros with the same amount.
But this doesn’t mean that the pound will continue to weaken.
If you are abroad, you can still use your credit and debit cards to withdraw cash if you’re in an EU country or not.
Tourists will only be able to buy a limited supply of alcohol in duty free now.
Holiday makers will only be able to bring back up to a litre of spirits, six bottles of wine, 16 litres of beer and 200 cigarettes.
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Passports
Now that Britain has voted to leave the EU, our passports will change a lot.
It is unclear what the short term effects of Brexit will mean for our passports, but it is assumed that they will have to be redesigned.
We will lose the words ‘European Union’ from the top of the front cover and it is expected that they will change colour so they are not confused with the old ones.
The most likely situation is that old passports will continue to be valid until they need to be renewed.
Businesses are thought to be badly hit by Brexit.
Before, their EU passport meant that they could do business across all member countries.
Once negotiations start, this is likely to change.
Fuel
According to experts, British motorists could face much higher fuel prices.
Brian Madderson, chairman of the Petrol Retailers Association, has said that the price could increase by as much as three pence.
The AA also predicted that costs could go up by 2.25 pence per litre.
The plunging pound will also have an immediate effect on the cost of fuel.
Motorists could see petrol prices go up as early as next week.
But as the pound starts to strengthen again, the cost of fuel will start to balance out again.
Property Prices
After Brexit, it is estimated that house prices will go down.
Independent property expert Henry Pryor predicted that house prices in the UK would plummet by 15 per cent.
But KPMG believe that the drop will only be by about 5 per cent.
But experts worry that this could leave Britain vulnerable to foreign investors.
Those living overseas could take advantage of the lower house prices and snap up properties in London’s most exclusive areas.
The move is being called a “Brexit bubble”.
Mortgages
There has been no announcement yet that interest rates will change and it is in the interest of the government to keep interest rates low.
The treasury predicted that borrowing costs could go as high as 1.1 per cent if Britain left the EU.
Before the referendum, David Cameron said that mortgage costs could go up to £1,000 a year.
Higher interest rates will mean a better market for tenants, but a tough deal for buy-to-let landlords.
Many expect interest rates to be cut over the next six months.
Pensions
At the moment, our state pensions have an EU enforced “triple lock” which forces employers to increase pensions every year.
Workers’ pensions go up by either 2.5 per cent, inflation or increase in average earnings each year.
In the lead up to the referendum David Cameron warned that this would be under threat.
If you were to withdraw your private pension today, then that would be worth less than before.
But, with private pensions, rates are likely to fluctuate with the market.
If the economy slows too much, the Bank of England will bring in measures to try and bolster the pension pot.
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