"Understandably, lenders are suspending mortgage offers and, in turn, we’re now suspending our property investment division."
deVere Group says that with immediate effect it will temporarily close its property investment division as inflation fears grow, which suggests that the Bank of England will have to continue to hike interest rates more aggressively to combat rising prices.
James Green, deVere Group's investment director, commented: “We are concerned about the availability of credit and, therefore, an imminent drop in property prices so we are temporarily suspending all property investment projects.
“We understand many clients around the world will be concerned about current mortgages and protection and, as such, we have put together a dedicated team to assist with these enquiries.”
Nigel Green, CEO and founder of deVere Group, added: “Bank of England’s chief economist has indicated that interest rates could rise sharply imminently.
“The markets are already pricing in 5.8% by next March. But I would not be surprised if interest rates reach above 7% in the spring.
“Understandably, lenders are suspending mortgage offers and, in turn, we’re now suspending our property investment division.
“A result of the mini budget is that mortgage prices are set to increase, and borrowers are to have less options. The Chancellor and PM Liz Truss have recklessly gambled with the UK economy.
“The pound, gilt market, the stock market, and now the property market all reacted phenomenally negatively to their plans as the pull away from UK plc gathers momentum.”
