The private bank has lowered loan-to-values on sterling mortgages within prime central London from 75% to 70% for new business, but existing mortgage borrowers will not be affected by the decision.
A spokesperson for the bank said: “This decision comes as a result of the Brexit vote and the creation of the uncertainty within the UK and London property market.”
Fears over how the UK will be affected by its decision to leave the European Union, has undermined confidence among London buyers, sparking concerns that property prices may suffer. At the same time, the weakening of sterling against the euro, and more severely against the US dollar, is making foreign investment in the UK more attractive, which brokers predict will help to prevent any big drops in property values.
Noel Edmonds, mortgage manager, Largemortgageloans.com, said: “Looking at currency fluctuations, we have seen those clients, who had already been looking for property, moving quicker to secure a deal now that the currency is in their favour, as they are able to get more pounds for their currency.
“However, due to the political uncertainty, our European clients are holding back and being cautious even though the euro has appreciated against the pound.”
Ian Gray, senior partner, Kinnison, said that despite Credit Suisse’s move to reduce loan-to-values (LTV), it still sits in a strong position as many other private banks cap their lending at 60 to 65% LTV.