Since the Bank of England cut interest rates earlier this month from 0.5 per cent to a record low of 0.25 per cent, there has been a 55 per cent increase in week on week mortgage enquiries at deVere Mortgages.
As I was quoted as saying recently in The Times, Yahoo! Finance, Financial Reporter, Mortgage Introducer and Your Money, amongst other media, we directly relate this surge in enquiries – which is the largest we’ve seen since deVere Mortgages launched as a standalone brand – to the BoE’s rate cut, aimed at cushioning the UK from a possible post-Brexit recession.
Indeed, we firmly believe that this rate cut has prompted individuals to take action and actively enquire about a mortgage. Before the Leave victory was announced, people had been stalling so they could see how the land lies after the vote.
Consequently, the slash in interest rates has acted as a catalyst for people to now get moving.
Furthermore, it’s not just the rate cut that has buoyed up potential buyers. Price increases have slowed considerably over the past few months, particularly in areas such as London, East Anglia, the North of England and the West Midlands.
In addition, UK-based property is still very much in demand from overseas buyers, predominantly due to the major strengths of British property investments; the falling post-Brexit pound – therefore making UK property purchases in a foreign currency less expensive than before; and also, many sellers have been willing to accept lower offers since the referendum, due to apprehension following the Leave victory.
Naturally, these are all appealing trends for potential buyers, and coupled with the interest rate cut, mortgage enquiries have continued to rise.
deVere Mortgages anticipates this rise to continue in the coming months, as more and more people start to take action following Brexit and the Bank of England’s measures.