You are here: Home - News -

Virgin Money boss says Brexit could hike mortgage pricing after ‘negative economic spiral’

  • 23/02/2016
  • 0
Virgin Money CEO Jayne-Anne Gadhia said the upheaval of a British exit from the EU could lose UK jobs and lead to a ‘negative spiral’, eventually increasing mortgage rates.

In an opinion piece in The Telegraph, Gadhia said: “So much upheaval would surely subject our strong economy to continuing and very damaging uncertainty.

“Wouldn’t trading houses move to Frankfurt and Paris? Wouldn’t jobs be lost to the EU bloc? And wouldn’t consumer confidence in the UK suffer as a consequence? Then we are into a negative spiral of job losses, inflation and interest rate rises which can only result in increasing prices for mortgages, for credit cards and for financial services in general.”

She added that a vote to stay in gives customers more financial certainty regarding the costs of their borrowing and their ability to repay.

Meanwhile, in a letter to The Times newspaper today, over 200 business owners have signed a call for the UK to stay inside the EU, warning an exit would put the economy at risk.

The signatories include chairmen or chief executives of 36 companies from the FTSE 100, including big employers such as Asda, BT, Marks & Spencer, Kingfisher and Vodafone.

The letter said: “Sir, The businesses we lead represent every sector and region of the UK. Together we employ hundreds of thousands of people across the country. Following the prime minister’s renegotiation, we believe that Britain is better off staying in a reformed European Union. He has secured a commitment from the EU to reduce the burden of regulation, deepen the single market and to sign off crucial international trade deals.

“Business needs unrestricted access to the European market of 500 million people in order to continue to grow, invest and create jobs. We believe that leaving the EU would deter investment, threaten jobs and put the economy at risk. Britain will be stronger, safer and better off remaining a member of the EU.”

There are 0 Comment(s)

Leave a Reply

You may also be interested in