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Rate cut heralds 55% jump in mortgage enquiries at deVere
Mortgage advice firm deVere reports a 55% rise in mortgage enquiries since the Bank of England (BoE) cut interest rates for the first time in seven-and-a-half years earlier this month.
The specialist in expat overseas buyer advice said the rate move on 4 August acted as a catalyst, particularly for British expats.
Mike Coady, managing director of deVere Mortgages, said: “Before the Brexit vote many people had been delaying taking action until the referendum result was revealed so they could see how the land lies; and this interest rate cut has now provided extra impetus to act now to secure a home loan.”
The slowdown in house price growth in areas like London, East Anglia, the West Midlands and the North has also been a driver, added Coady.
“Furthermore, property in the UK is still in high demand from overseas buyers, mainly due to the major underlying strengths of British property investments; the plummeting post-Brexit pound which makes buying property in the UK with foreign currency less costly than before; and because some sellers have been being apprehensive since the Leave victory, and as such, are prepared to accept lower offers,” he said.
Coady said he expects the BoE’s post-referendum action to recession-proof the UK will keep activity levels high.
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A Mortgage Solutions poll taken a week after the rate cut revealed just 7% of domestic-focused brokers saw a significant uptick in remortgage enquiries, where 66% reported no difference since the interest rate drop.