Mortgage enquiries from overseas buyers are up 50% since the Brexit decision, according to the mortgage division at deVere Group.
DeVere Mortgages, which specialises in UK mortgages for expats and overseas buyers, primarily from the Middle East, Europe and Far East, believes that the increase is a direct result of the outcome of the UK’s vote to leave the European Union.
Mike Coady, managing director of deVere Mortgages, said that the firm attributes this significant surge in demand primarily to “five key motivators”, including the plummeting pound and signs of UK property prices falling, even prior to the EU referendum result.
The primary factor, he says, is that 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” said Coady. “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.”
Second, he believes that there are some signs that the rate of underlying house prices is continuing to “cool off” in many parts of the country, something that he says began before the referendum.
“Third, the pound has plummeted since the Brexit vote’s decision was announced,” said Coady. “It is down approximately 11.5% against the US 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.”
The fourth factor, similarly, is down to those raising a deposit in their local foreign currency are finding it easier to do so due to the “Brexit-battered” pound and fifth, Coady believes, 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,” he added.
DeVere Mortages added that vast majority of the enquiries it has had since 24 June are from expats and nationals from the UAE, Qatar and other parts of the Middle East.