Possible Brexit boosts demand for mortgage enquiries
The possibility of Brexit is causing a significant upsurge in mortgage enquiries at deVere Mortgages.
As the UK prepares to vote in the June referendum as to whether they should leave the EU, the issue is dominating news agendas, and is likely to do so until the vote takes place on the 23rd June.
Since the campaigning has ramped up in recent weeks – particularly since the announcement by London Mayor, Boris Johnson, who has a long-standing ambition to be Prime Minister, to back the Vote Leave lobby, and the pro-Brexit groups accusing David Cameron’s In Campaign of scaremongering by using ‘Project Fear’, the message of the Vote In campaigners appears to be making a strong impact outside Westminster.
As such, we have noticed a sharp increase in the number of enquiries regarding mortgage applications. Indeed, there has been a 30 per cent week-on-week surge in demand.
Consequently, and as I was quoted as saying this week in International Business Times, Economic Voice, Your Mortgage, Fintech Finance, Property Reporter, Introducer Today, Best Advice and Just do Property, amongst other media, we assign this increase predominantly due to the effectiveness of the In Campaign highlighting that mortgages could become more expensive should Britain leave the European Union after June’s referendum.
This is because, if the UK votes to leave, the large trade deficit in Britain could lead to a run on sterling, therefore requiring the Bank of England to set higher interest rates in order to stem it. This would, of course, lead to costlier mortgages as lending rates increase.
Naturally, we can’t predict the outcome of June’s referendum, but it would certainly seem that the possibility of the fallout of Brexit is leading to the uptick in mortgage enquiries.
Individuals are rushing to arrange, apply for and secure mortgages now should interest rates increase and home loans become more expensive. As such, I believe this upsurge will continue to build as the referendum date moves closer.