20 Jul, 2016
Brexit has generated 50% surge in mortgage enquiries
Mortgage enquiries from overseas buyers have risen 50% since the Brexit result, reports the mortgages division of deVere Group, one of the world’s largest independent financial advisories.
deVere Mortgages, which specialises in UK mortgages for expats and overseas buyers, predominantly from the Middle East, Europe and Far East, affirms the uptick is a direct outcome of the result.
Managing Director of deVere Mortgages, Mike Coady, comments: “We have experienced an almost 50% increase in mortgage enquiries from British expats and overseas buyers since the result of the historic referendum that will see Britain leaving the European Union”.
“We can attribute this significant surge in demand primarily to five key motivators,” he added.
He continues: “First, UK property has long been, and remains, highly in demand by those who reside overseas. This is because of the ongoing fundamental strengths of British residential property investments. But many potential purchasers had been putting off enquiring about mortgages and waiting for the referendum result to see how the land lies. Now we have the outcome, a high proportion of these have swung into action”.
Secondly, Mr Coady believes there are some signs that the rate of underlying house prices will continue to cool off in many parts of the country. He said this began before the referendum and is clearly an attractive trend for buyers.
Third, he added “The pound has plummeted since the Brexit vote’s decision was announced. It is down approximately 11.5% against the dollar and 10.5% against the euro. As such, those buying in the UK with their local foreign currency are finding more value than before”.
“Fourth, similarly, those raising a deposit in their local foreign currency are finding it easier to do so due to the Brexit-battered pound”.
He continues, “Fifth, it is our experience that some UK sellers are more nervous since the shock result. With this in mind, some are willing to take lower offers from potential buyers than they were previously, especially overseas buyers who tend not to be part of a chain”.
Mr Coady goes on to say: “The vast majority of the enquiries we have had since 24 June are from expats and nationals from the UAE, Qatar and other parts of the Middle East”.
Concluding his statement, he adds: “Typically, expats are flagged-up as ‘high risk’ by UK lenders, even if they have a substantial and secure salary. For this reason, most expats understand that they need to use the services of a specialist broker”.
deVere Mortgages works with the most suitable UK-based and international mortgage lenders in order to offer clients a wide choice of products to suit their individual needs. deVere Mortgages also provides buy-to-let opportunities, re-mortgaging, equity release and able to ensure tax efficiency from rental incomes.