How UK's Leave Vote Will Affect Your Money

Voters defied dire warnings on the economy to back a Brexit – so what will the decision mean for Britain's household finances and their job prospects?

Holidaymakers and motorists will be among the first to suffer thanks to the plunge in the value of the pound – while prior to the vote there have also been warnings about the impact of economic uncertainty on jobs , wages, pensions and house prices.

The currency moves will mean more expensive trips abroad for UK tourists as their money will not go as far while drivers are to see petrol prices go up as oil – priced in dollars – becomes more expensive in pounds.

RAC Fuel Watch spokesman Pete Williams said forecourt retailers were likely to see an increase in the wholesale price of fuel of 1.5p which would be passed on to motorists at the pumps.

The result could also have an impact on air fares, with Ryanair's chief marketing officer Kenny Jacobs saying they could go up - though it was too early to say for sure.

Thomas Cook (Xetra: A0MR3W - news) announced Friday it was temporarily restricting orders in store to £1,000 per customer following a surge for foreign currencies after after the markets plunged into turmoil with tens of billions of pounds wiped off the FTSE 100's value and the pound plunging to a 31-year low against the US dollar.

:: What about the economy and interest rates?

Some experts are already predicting that Britain will see slower economic growth or even plunge back into recession, echoing a warning by Bank of England governor Mark Carney prior to the poll.

Meanwhile, the fall in the value of the pound will push up the prices of all imported goods, putting upward pressure on inflation.

Yet a rise in interest rates to keep this in check seems far from likely, with experts speculating instead that they could be cut to zero to help the economy withstand the shock of the Leave result.

This would be welcomed by mortgage borrowers and other indebted consumers but spell more pain for savers – who have already been hammered by seven years of interest rates at the historic low of 0.5% following the financial crisis.

:: Will wages and jobs suffer?

Treasury forecasts – derided by Leave campaigners – predicted that an exit vote would cut wages by an average of £800 a year and cause 820,000 job losses.

They also warned of hundreds of billions of pounds being wiped off retirement funds.

But what is the reality following the vote? The market carnage that has wiped billions of pounds from the value of the UK’s biggest listed companies does paint a bleak picture about prospects.

International banks were among those warning on the future, with Deutsche Bank (LSE: 0H7D.L - news) boss John Cryan saying there was no doubt the consequences "will be negative on all sides".

Deutsche employs 9,000 people in the UK. Wall Street giant JP Morgan has previously warned of an impact on UK jobs.

Meanwhile UK-based telecoms giant Vodafone said on Friday it was "too soon" to say what the impact of the vote would be on where it has its headquarters.

Elsewhere, the industry body representing big UK drugs firms such as GlaxoSmithKline (Other OTC: GLAXF - news) and Astra Zeneca – in a sector employing 183,000 people and with an annual turnover of £56bn – warned following the vote that its prospects would be tougher.

Mike Thompson, chief executive of the Association of the British Pharmaceutical Industry (ABPI), said the decision "creates immediate challenges for future investment, research and jobs in our industry in the UK".

Trade body UK Steel said the vote would send shockwaves through its industry.

Others were more circumspect, with German car maker BMW (Swiss: BMW.SW - news) saying it would not speculate on the potential impact on operations in the UK and Ford, with 14,000 workers, saying it would make no changes to its plans "unless there is clear evidence that action is needed".

:: What about house prices and housing? And pensions?

In the property sector, Andy Pyle, UK head of real estate at KPMG, said in the wake of the result that London would see a decline in its position as Europe’s leading financial centre, impacting demand for property in the City in particular.

David Thomas, chief executive of house builder Barratt Developments (LSE: BDEV.L - news) , said while there would be a "period of uncertainty" it was confident it could respond to the changes.

For life insurance and pensions, Piers Hillier, chief investment officer at Royal London asset management, said it expected the UK to fall into recession after the result.

He said long terms returns were likely to "ride out the short-term volatility" and advised shorter term investors to consult a financial adviser before making any changes (Other OTC: UBGXF - news) .