Mortgage rates after May election.
Mortgage rates after May election.
Author
Discussion

rfisher

Original Poster:

5,064 posts

313 months

Tuesday 10th February 2015
quotequote all
So, in terms of mortgage availability and lending, things have progressed significantly since 2008.

What's the consensus on the likely affects on mortgage products after the May election?

Obviously depends on the outcome, which is not predictable, but I'm wondering if we may see another mass panic from lenders for a few months or longer, with most of the more favourable products being withdrawn.

As I need to remortgage this year, I'm considering doing this before May and taking an ERC hit now rather than waiting until later in the year.

Should I stay or should I go?

Ta.

Cheib

25,428 posts

205 months

Tuesday 10th February 2015
quotequote all
My guess is that the markets will view a Labour victory as being bad ultimately bad for the economy and this may well end up (in the end with more QE) and thus rates stay low...Tories win/coalition markets will think economy is in better hands and mean QE is likely to end sooner so intersts rates may start to edge up.

Burgmeister

2,206 posts

240 months

Tuesday 10th February 2015
quotequote all
No change. BoE forward outlook gives an indication of where things will go but remember the Bank is, apparently, independent.

anonymous-user

84 months

Wednesday 11th February 2015
quotequote all
Burgmeister said:
No change. BoE forward outlook gives an indication of where things will go but remember the Bank is, apparently, independent.
The bank is notionally independent, but it's decisions are very heavily influenced by government policy,

I think (and hope) rates are going to rise in the next 12-18 months, albeit modestly, regardless of the colour of the government.

rfisher

Original Poster:

5,064 posts

313 months

Wednesday 11th February 2015
quotequote all
Thanks.

I'm mainly concerned about not missing out on low rate 5 - 10 year fixed rate deals when I remortgage.

I could see the ones currently available being withdrawn after the election if the markets and banks get jittery again.

On the other hand, there may be even better deals around after the election if the new government looks like it can handle the deficit and recovery.

No definitive answer I know, but there are usually a few PH experts who have their ear to the ground on these things.

rossub

6,032 posts

220 months

Wednesday 11th February 2015
quotequote all
rfisher said:
No definitive answer I know, but there are usually a few PH experts who have their ear to the ground on these things.
No chance. "Experts" can say what they like, but if anyone were able to really predict the future path of interest rates, they'd have more money than Warren Buffet. It's all a gamble, with infinite variables and "what ifs".

No way would I make a financial decision based on what someone on PH reckoned interest rates would be in future!