50 per cent rise in mortgage enquiries since Brexit
Since the historic Leave victory was announced at the end of June, deVere Mortgages reports a 50 per cent increase in post-Brexit mortgage enquiries.
As I was quoted as saying recently in Money Observer, International Investment, Mortgage Introducer, Mortgage Strategy, Mortgage Solutions and Building Construction Design, amongst a host of other media, such a jump in the number of enquiries from British expats and overseas buyers mainly from the UAE, Qatar, China, Hong Kong, Switzerland, Spain and Germany is a direct result of Brexit.
This can be attributed to five key areas.
First, UK-based property is still very much in demand from overseas buyers, predominantly because of the major strengths of British property investments. Before the election, a large number of potential buyers had been shelving making enquiries before the decision was announced, whilst now they are taking action.
Second, there are certain signs that the rate of underlying house prices continues to fall in large parts of the country, which began before the referendum.
Third, post-Brexit, the pound has nosedived, down by around 11.5 per cent against the dollar, and 10.5 per cent against the euro. Therefore, those purchasing property in the UK with their local currency will find prices less costly than before.
Fourth, in a similar vein, people putting together a deposit in their local foreign currency will find it much easier due to the effect Brexit has had on the pound.
Lastly, fifth, deVere Mortgages has experienced certain sellers being extremely apprehensive since the Leave victory was revealed, and as such, are prepared to accept lower offers.
Whatever the reason for purchasing a property in the UK, it is typically the case that expats are deemed ‘high risk’ by UK lenders, even if they have a sizeable and secure salary. For that reason, the majority of expats recognise the need to consult a specialist broker such as deVere Mortgages, who works with a large and comprehensive selection of UK-based and international mortgage lenders.