As the triggering of Article 50 draws ever closer, we will aim to keep you abreast of Brexit’s implications on both your property(s) and mortgage(s) of present and future with our regular Enness Brexit mortgage update.
Brexit is unprecedented and ultimately confusing territory, so rest assured our Brexit mortgage update will keep you up to date on the most important mortgage and property market news that the road to Brexit is leaving in its wake.
So what’s been happening recently?
The ongoing story is the weakening Great British Pound (GBP). Since June 23rd, GBP’s value has plummeted by 16%. This is very good news for our high net worth foreign national clients with overseas income. The Financial Times reported recently that in some areas of Prime Central London (Chelsea, Mayfair, Belgravia), the impact of the weakened GBP could represent discounts of up to 40%, once Forex has been taken into account.
Furthermore, Brexit appears to have been one of the contributing factors to diminishing land development prices in Prime Central London, down 11.5% in 2016.
For high net worth clients with income not in GBP, Brexit is offering a rare opportunity to snap up prime property in London for far less than would have been possible a year ago.
Reports have abounded of late of homeowners waiting for extended periods of time before receiving offers on their homes. Some have put this down to a dose of Brexit uncertainty as sellers in London are having to wait an extra 37 days compared to last year to sell their property and longer in other areas of the UK, on average.
With sellers having to wait longer on average to sell their property than in recent times, more discounts can be found. Those serious about selling their house will naturally lower the price to make their property more attractive to potential buyers; potentially very good news for residential home buyers and buy to let buyers.
How can we help?
Due to Enness’ unusually large network of lenders, we will be able to facilitate your mortgage needs regardless of what lies ahead. Using lenders with whom we have special relationships with, we ensure cases are looked at on a case by case basis.
2017 is a very exciting year for the UK property market. Currency trends favour investment now and any one of our expert brokers will be delighted to discuss your unique case and find a tailored solution for your bespoke needs. Read more here.
By Hugh Wade-Jones, Managing Director, Enness Priviate Client