deVere suspends property division as UK mortgage crisis intensifies
We’ve made the decision to temporarily close deVere’s property investment division, with immediate effect, as inflation fears throughout the country heighten.
The availability of credit was a concern and, as such, an imminent decline in property prices, so all property investment projects will be suspended for now.
Of course, we realise that many clients across the globe will be concerned about current mortgages and protection, which is why we’ve set up a dedicated team to help with any enquiries.
The Bank of England’s chief economist has signalled that interest rates could increase sharply imminently. As it stands, the markets are already pricing in 5.8% by March 2023, yet it wouldn’t surprise me if rates surpass 7% in the spring.
As I talked about on BBC Radio 4’s flagship Today programme, and was also quoted by City AM, International Investment, International Adviser, Financial Reporter and Investment Week, amongst others, justifiably, lenders are halting mortgage offers and, in turn, we’re temporarily suspending our property investment division.
A consequence of the mini budget is that mortgage prices are set to rise, and borrowers will have fewer options. Indeed, to my mind, the Chancellor and Prime Minister have made a reckless gamble with the UK economy.
Sterling, the gilt market, stock market, and now the property market all reacted extremely negatively to their plans as the move away from UK plc gathers pace.
Therefore, if you have any queries on current mortgage and protection arrangements, please get in touch with us and we’ll help all we can or introduce you to dedicated strategic partners if required.