Mortgage applications up 43%

Mortgage applications have increased by 43% in the last month according to deVere Mortgages, with the vast majority of new enquiries coming from overseas buyers and Britons living and working abroad.

Related topics:  Mortgages
Rozi Jones
28th July 2015
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The rise has been attributed to a mixture of interest rates rumours, currency weakness and post-election pick-up.

Sterling has fallen sharply in the last 12 months, having been at USD 1.72 in early July last year, it is today at USD 1.55.

Bank of England governor Mark Carney has also said that an interest rate rise "will likely come into sharper relief around the turn of this year".

Mike Coady, Managing Director of deVere United Kingdom, explains:

"Indeed, we forecast that the rate could go to 1 per cent within 12 months. As such, there is perhaps a greater sense of urgency; people aren’t putting off applying for fixed mortgages any longer.

“And even if rates do rise, buyers are aware that they will remain very low and will not go back to the heady pre-crash rates. There is a new, much lower, normal and this will drive demand over the longer term too.

"There is a greater sense of buoyancy in the market since the general election in May. The post-election uptick was almost immediate. As we reported a week after the Conservative victory was announced, the volume of enquiries increased by more than 50 per cent over the seven days following, compared to the previous week.

“Investors seemingly had pre-election jitters and are now forging ahead with applications. The government’s scrapping of the proposed ‘mansion tax’ and excluding of property under a certain value from inheritance tax are likely to be important triggers for growing demand.”

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