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Fears over Brexit boosts mortgage demand

Christina Hoghton
Written By:
Christina Hoghton
Posted:
Updated:
02/03/2016

Borrowers are keen to grab a good deal now, before a potential rate rise

The possibility of Brexit is fuelling a surge in mortgage enquiries, according to deVere Mortgages.

It said that in the last two weeks since campaigning began, it has seen a 30% week-on-week jump in mortgage enquiries, driven by fear of Brexit.

The mortgage division of the financial advisory firm puts this down to the fact that if Brtiain was to leave the EU interest rates could rise, meaing mortgages would become more expensive.

Mike Coady, managing director of deVere Mortgages, explained: “The UK’s EU referendum is getting almost wall-to-wall media coverage. The issue is dominating news agendas and it is likely to increasingly do so as we move towards the vote on 23 June.

“The In Campaign has been keen to point out, and effective in doing so, that mortgages could become more expensive if Britain leaves the European Union following June’s referendum.”

“If the UK votes to leave the EU, Britain’s very large trade deficit may cause a run on sterling and, as such, require the Bank of England to introduce higher interest rates to stem it. Of course, this would have the consequence that mortgages will become more expensive as lending rates rise.

“People are rushing to apply for and lock-in a mortgage now as a precaution in case interest rates go up and mortgages become more costly. I believe we can expect this surge in mortgage enquiries to intensify as we approach the vote.”


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