Will the UK election affect mortgage rates?

A general election in the UK can significantly impact mortgage rates, often indirectly, through its influence on economic conditions, investor confidence, and monetary policy decisions.

The next Monetary Policy Committee meeting is on 1st August, where experts expect to see the first Bank of England base rate cut since its 15-year high of 5.25% in August last year.

The policies of the winning party might lead the Bank of England to act accordingly. For example, if we have a government adopting expansive fiscal policies, this could lead to rate increases to curb inflation.

Or, if we have a government focused on austerity and reducing public debt, this might support lower interest rates.

Any government-backed incentives, such as the stamp duty holiday we saw during the pandemic, drove the first-time buyer market significantly, and factors like this can also influence the rates lenders offer to customers.

Whatever the fallout of tomorrow’s election, our advisors are ready to guide you in choosing the most suitable option for your needs, and can advise you according to the current market changes.

If you would like to discuss how the UK election could affect current mortgage rates in more detail, contact us on 02921 672480 or email: info@grosvenormay.co.uk.