The volume of mortgage enquiries received by deVere Mortgages has surged by 55% week on week since the Bank of England cut interest rates from 0.5% to an historic low of 0.25% earlier this month.
The mortgage lender, part of deVere Group, attributes the rise in enquiries directly to the Bank of England’s rate cut on 4 August that was aimed at cushioning the UK from a post-Brexit vote recession.
“This is one of the biggest surge in mortgage enquiries we’ve received since deVere Mortgages was launched as a standalone brand in 2015,” said Mike Coady, managing director of deVere Mortgages. “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.”
It is not just the interest rate cut that is stirring borrowers into action. It also comes against a backdrop of price increases having slowed across the country in recent months, according to Coady.
He continued: “Property in the UK is also 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.”
Coady expects the recent surge in mortgage enquiries to continue as a growing number of people in the UK and overseas begin to take action following Brexit and the Bank's measures to recession-proof the UK.
“These are, naturally, all attractive trends for would-be buyers, and, as such, coupled with the latest interest rate cut, the level of mortgages enquiries has continued to rise,” he added.