The mortgage market after the general election

As we approach the festive period, a sense of stability has returned to UK politics. The government still has to negotiate future trade terms with the EU, but it does so with an 80-strong majority in Parliament.

With private investment and public spending set to rise, the UK economy is likely to benefit from an end to the paralysis that has gripped the country since 2016.

All of this will add to the pressure on the Bank of England to normalise rates. Five-year swap markets have already been ticking up in anticipation.

Some lenders are already re-pricing their fixed-rate deals to reflect the changed economic outlook and we are seeing a bottoming out of interest rates. As progress is made to deliver Brexit, we will start to see incremental rises in five-year rates, although it won’t happen quickly.

With a renewed sense of clarity and a fluid interest rate environment, now is the perfect moment to look at your finances and talk to your mortgage broker.

Please get in touch if you’d like to find out more or discuss your borrowing options.