How Brexit will affect your personal finance

The British people voted to leave the European Union last Friday amid a storm of bitter and divisive campaigning, that for the most part was built on accusations, negative focus and at times downright dishonesty.

As such, in the case of many the full effects of what they had voted for did not become clear until it was too late.

Here we have a lowdown from BBC on how your personal finance may be affected in the future, with reagrds to various differing aspects.

1) The pound

We have all heard it in the last few days - the value of sterling has plunged to its lowest levels since 1985 since it became clear the Leave vote was going to be victorious. Buying goods or services is likely to get more expensive and inflation will increase, which in turn affects most of the things that will follow in this list.

2) Mortgages

David Cameron predicted that the cost of a mortgage may rise by up to £1,000 a year. A rise in interest rates would also make renting more expensive, but it seems that the Bank Of England is going to cut interest rates, which would mean the cost of lending may fall.-

3) House prices

The IMF warned a vote for Brexit may lead to a significant drop in house prices, with the Treasury saying anywhere between 10 and 18%. First-time buyers would welcome the news but those who are already on the property ladder may be worried.

4) Wages

Many experts have said that unemployment would increase substantially, leading to a drop in average wages with less pressure for a rise. Predictions say that the average worker will be £780 a year worse off. However, saying as the UK will continue to be a member of the EU for the next 2 years it is difficult to see whether that projection will be accurate.

5) Benefits

The government will most likely have less money to spend considering the argument that we will not develop as quickly outside the EU as inside. Since the welfare budget amounts to about 28% of all government spending, it is logical that it might see a significant proportion of cuts, further reducing the generosity of tax credits and benefit payments.

6) Taxes

Chancellor of the Exchequer George Osborne said that in case of Brexit there will be tax increases, including a 2p rise in basic tax rates, as well as a 5p rise in Inheritance Tax. Politically this would be a difficult move for the Conservatives considering the promises they made at the last elections, but the only other option would be to extend the austerity period.

7) Pensions

The so-called triple-lock pensions are threatened by an exit vote according to Cameron's pre-referendum chat. This is the yearly increase in state pensions at the level of earnings, inflation, or 2.5%, whichever is higher. If economic performance does deteriorate, the Bank of England could decide on a further programme of quantitative easing (QE), as an alternative to cutting interest rates. This would lower bond yields, and with them annuity rates. So anyone taking out a pension annuity could get less income for their money.

8) Investments and savings

Any savers would welcome a rise in interest rates, but it would mean that the UK is less attractive for foreign investors. "We cannot assume an Out vote will be bad for the long-term prospects of the stock market," said investment bank platform Hargreaves Lansdown.

9) Holidays and travel

David Cameron claimed that a holiday for four people for eight nights will cost £230 extra, as a result of sterling's devaluation. Most airlines have warned of the increase in prices of flights with more restrictive aviation legislation.

10) Mobile phone charges

With the news that roaming charges throughout the EU were set to be scrapped, BT and Vodafone have both said that this may no longer apply to Britain, but this would be a decision to be made by the new government.