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Fri 14 Oct 2016 12:27 AM

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UAE mortgage enquiries 'more than double' during Q3

Data from finance comparison website reveals 119% jump in interest compared to Q3 2015

UAE mortgage enquiries 'more than double' during Q3

The number of UAE residents searching for mortgages in the third quarter of 2016 has more than doubled, compared to the same period in 2015.

Figures released by compareit4me.com, the Middle East finance comparison site, indicates a growing willingness among UAE consumers to take on finance to take advantage of the property market, where prices have fallen since hitting peaks in mid-2014.

It reported a 119.5 percent increase in mortgage interest using data from its mortgage comparison platform. 

According to a recent study from Core Savills, over half of Dubai’s tenants are looking to buy their own residence in the future. Of these, the report said, 62 percent were leaning towards buying to own, rather than buying to let.

That same report added that buyers are being deterred by difficulties when it comes to securing finance on homes.

“If people are struggling to find good finance options for property, they’ll of course look to compare offerings. This is where we come in – our mortgage portal allows users to compare almost 80 different mortgages,” said Jon Richards, CEO at compareit4me.com. 

“It seems people are looking to take advantage of the low prices in the property market, and they’re eager to take on finance to make sure they don’t miss out on the great deals to be had.”

Compareit4me’s numbers reveal that, in the third quarter of 2016, there was a 28 percent reduction in the number of people looking for mortgages that don’t require a salary transfer account with the same bank.

Richards said this indicates that users are "wising up" to the fact that they can secure better home loan rates if they borrow from banks with which they hold a salary transfer account.

“This makes perfect sense in a property market being defined by low prices – the benefits of easy-to-buy property are negated if buyers have to pay out more on interest payments. Our users know this, and so they’re opting for the mortgages that give them the best rates – in this case, the mortgages that require salary transfer accounts,” said Richards. 

According to compareit4me’s numbers, the most searched for mortgage product is RAKBANK’s Home In One product, followed by Union National Bank’s Mortgage for Expatriates and ACDB Mortgages.

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