Could Brexit Be Costing You More in Interest?
Last updated: May 17, 2025, 11:41 a.m.
A Full Comparison of UK Rates Before and After EU Exit
Brexit reshaped the UK’s economy and financial landscape. But beyond headlines and political debates, what’s the actual cost to everyday borrowers and savers? This in-depth post compares UK financial conditions pre-Brexit (2010–2016) with post-Brexit (2017–2025), focusing on:
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📉 Bank of England base rates
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🏠 Average mortgage and personal loan interest rates
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📊 Inflation, GDP, and unemployment trends
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🔍 Real-world consequences for consumers
Let’s explore whether leaving the EU has made borrowing in Britain costlier — and what practical steps you can take today.
Bank of England Base Rates 📈
| Period | Avg. Base Rate |
|---|---|
| 2010–2016 (Pre-Brexit) | ~0.5% |
| 2017–2025 (Post-Brexit) | 0.1% to 5.25% |
Insight: Rates stayed flat for years, then surged after 2021 due to inflation. Borrowing became much more expensive. The post-Brexit economy encountered new trade dynamics and inflationary pressures that pushed the Bank of England to hike rates aggressively by 2023, reaching the highest level since 2008.
Mortgage Rate Trends 🏡
| Year | Avg. 2-Year Fix | Avg. 5-Year Fix |
| 2016 | ~3.1% | ~2.8% |
| 2020 | ~1.99% | ~2.3% |
| 2023 | ~6.85% (peak) | ~5.5% |
| 2025 | ~4.66% | ~4.3% |
Insight: Mortgage rates tripled post-Brexit due to BoE hikes. Homeowners now face steep refinancing costs. This has had a chilling effect on the housing market, with first-time buyers and remortgagers seeing affordability squeezed. Many households who secured ultra-low mortgage deals during the pandemic now face a financial shock as their deals expire.
Personal Loan APRs 💳
| Year | Avg. Personal Loan APR |
| 2016 | ~5.7% |
| 2020 | ~4.5% |
| 2023 | ~8.27% |
Insight: Loan rates are now nearly double pre-Brexit levels, driven by rising base rates and lender caution. Higher interest on personal loans affects everyday borrowing — from financing cars to managing wedding expenses or home renovations. With household budgets stretched, this makes cost management even more crucial.
Inflation and GDP Growth 📉💷
| Period | Inflation (CPI) | GDP Growth |
| 2010–2016 | 0–2% (avg.), peaked ~5% in 2011 | ~2% annually |
| 2017–2025 | Peaked >11% in 2022, easing to ~3% in 2024 | ~1.5% avg., sharp -10.4% in 2020, mild recovery |
Insight: Inflation was relatively stable pre-Brexit, then spiked dramatically post-2020. This surge affected real income and purchasing power. GDP growth also slowed post-Brexit due to both external shocks like COVID-19 and internal adjustments from new trade and regulatory barriers.
Unemployment Trends 👷♂️📊
| Year | Unemployment Rate |
| 2010 | ~8% |
| 2016 | ~4.8% |
| 2019 | ~3.8% (record low) |
| 2023 | ~3.9% |
Insight: Unemployment improved, but Brexit introduced new frictions in the labour market. The end of freedom of movement created skill gaps in sectors like agriculture, hospitality, and logistics, leading to wage pressures that fed into higher inflation.
EU Alignment vs Divergence ⚖️🌍
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Pre-Brexit: Full EU membership with shared rules, open trade, and harmonised standards.
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Post-Brexit: Introduction of customs checks, regulatory independence, and divergence from EU rules.
Impact: UK consumers now face higher import costs, fewer product choices, and increased inflationary pressure, especially on food. The regulatory shift has also impacted financial products and consumer protection.
What It Means for You 🧾📉
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🏡 Mortgages: Be strategic with fixed rates — long-term deals may offer stability.
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💳 Loans: Use comparison tools to find the best deal — rates vary widely.
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💰 Saving: Good news — savers now enjoy higher returns with interest on ISAs and fixed-term accounts climbing.
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🛒 Shopping: Expect higher prices to stay — time to budget smart and look for loyalty savings.
Final Thoughts 💭
Brexit has had a tangible impact on personal finance. The shift from ultra-low rates to multi-decade highs has changed the borrowing game. Whether it’s your mortgage, car loan, or grocery bill — the post-Brexit economy demands sharper financial planning.
📉 The lesson? Stay ahead. Use platforms like compareinterestrate.uk to compare rates, plan your next fix, and make every percentage point count.
📊 Whether you’re borrowing, saving, or just trying to make sense of rising bills — knowledge is your best asset in today’s economy.
👉 Visit compareinterestrate.uk now to track the best deals, rate forecasts, and tips to save more.