deVere Group halts UK property division, fears of BoE rates above 7% by 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.”
deVere Group has decided to temporarily close its property investment division amid growing inflation fears, which could prompt the Bank of England to continue hike interest rates further to combat rising prices.
The UK financial advisory firm has $12 billion under advisement and will pull all UK property investment projects, effective immediately.
James Green, deVere Group Investment Director, comments: “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.”
The UK’s heightening economic upheaval has seen the International Monetary Fund (IMF) addressing the matter publicly for the first time: “We are closely monitoring recent economic developments in the UK and are engaged with the authorities,” said a spokesperson.
“I would not be surprised if interest rates reach above 7%”
Nigel Green, the CEO and founder of deVere Group, says: “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”, Nigel Green concluded.
“Should you have any concerns on existing mortgage and protection arrangements, please feel free to contact us and we will do our best to help or introduce you to dedicated strategic partners where necessary”, James Green added.