If it’s not one thing, it’s another. From rollercoaster mortgage rates to wide speculation over whether or not the Bank of England (BoE) will begin to cut the base rate of interest, the mortgage market has almost become as dramatic as a UK soap opera.
And now there’s something else to throw into the plotline: a general election.
Last month, Savills revealed how 79 per cent of people were undeterred by the prospect of a general election when it came to buying and selling a property – with 13 per cent claiming to be more committed to making a move. Although it’s worth pointing out that 8 per cent claimed to be less committed.
Admittedly, the 1,200 people surveyed were prime movers, but as we move closer to a general election (widely expected to take place in the latter half of 2024), it’s clear that it’s increasingly on people’s minds.
Today’s mortgage marketplace
As a Maidenhead mortgage broker, our team of Berkshire mortgage advisers have been working hard to respond to changes – sometimes daily – to mortgage rates in order to make sure that our clients get the best UK mortgage rates available.
And, as covered in our last article on mortgage rates, they are currently falling as swap rates drop and lenders compete with each other for business – the result of which is providing a welcome respite for those trying to find the best mortgage deals.
However, general elections always tend to give the general public pause for thought – whether it’s getting a mortgage or buying a car! So, what can homeowners and those looking to buy their first home expect when it comes to post-election mortgage rates?
Anybody’s guess
The truth is that nobody really knows what lies in store for those applying for mortgage in the UK after the general public has gone to the polls.
But we can look at the facts as they stand today, which are: mortgage rates are currently falling; swap rates are favouring cheaper fixed rate mortgage deals; and the BoE is likely to cut the base rate of interest soon.
Based on those variables alone, our team of Maidenhead mortgage advisers would expect mortgage rates to fall further post-election – regardless of the election outcome.
And, as has become a frequent reminder in our recent wave of mortgage articles, a mortgage offer is binding for six months after the offer has been made (although given how it can take 14 days for mortgage offers to be processed, we’d advise viewing it as a five-and-a-half-month window, in real terms). So, even if you apply for a mortgage and receive an offer before the election and rates significantly drop after the election, you can simply apply for the better rate.
Of course, navigating this process is much easier with a good mortgage broker on your side. Based on that, we would recommend that you get in touch with our team of mortgage advisers in Maidenhead to get the ball rolling.
Thinking about getting a mortgage before the general election? If so, contact the team directly on 01628 560820 or by emailing enquiries@altonmortgages.co.uk for expert mortgage advice in Berkshire.