Mortgage and brexit

IP Gloabl, an international property firm in Hong Kong, have produced an excellent piece looking at the ramifications of Brexit on mortgages and the article can be found here. What the article does make clear is that for many Brits with money to spare, Brexit could be a positive opportunity.

Since the vote, and the reduction in interest rates, it has become clear that more UK and international investors are looking to riskier assets including property, due to low returns on offer in the bank.

Any Brits earning in foreign currency have seen big reductions in UK house prices in local currency terms, especially if they are earning in USD or Yen.  Cheap borrowing rates are likely to continue, and the BOE did reduce their interest rates.

It has to be remembered though that the less than liquid nature of housing will always be it’s main downside, and historically, markets outperform property in the long-run.

 

Adam Fayed