Is the mortgage market turbulence getting you down? Have you got a mortgage-related question you need answering? Email in and we’ll get one of our experts to reply. Nick Mendes, mortgage technical manager at John Charcol, has given his advice to a reader below. If you have a question for our experts, email us at money@inews.co.uk.
Question: I’m a first-time buyer and looking to get a house with my partner. We expect to move this summer and get our first mortgage with a 15 per cent deposit. However, I’m wondering if I should hold off on buying and applying for the mortgage until later this year.
I know it’s an election year and a lot can change in terms of economic policy and outlook after an election. Is it worth us holding off? Could an election change things and mean cheaper mortgage rates?
Answer: In an election year, uncertainties about economic policies and their potential impact on various sectors, including the property market and mortgage rates, often loom large.
Home movers and first-time buyers may find themselves contemplating whether it’s wise to postpone their decisions in anticipation of possible changes, particularly in the hope things become more affordable.
Historically, changes in leadership or shifts in political priorities may lead to alterations in fiscal and monetary policies, which can, in turn, influence interest rates.
Rates are currently at a 15-year high, meaning mortgages are far more expensive than in recent years, and many will hope that they fall.
However, it’s crucial to note that predicting the exact outcome and its effects on mortgage rates can be challenging due to the multitude of factors at play.
While it’s tempting to wait and see if an election brings about more favourable mortgage rates, it’s essential to balance this consideration with other factors.
Mortgage rates are influenced by a combination of economic indicators, global events, and central bank policies, making them susceptible to change irrespective of election outcomes.
Election years often introduce an element of uncertainty into financial markets. This volatility can lead to fluctuations in interest rates as investors react to perceived risks and opportunities. Home movers and first-time buyers should be aware that waiting for potential changes in mortgage rates based on election outcomes is highly risky as a result, as no one will be able to confidently predict the outcomes following the results.
The decision to wait for potential changes in mortgage rates during an election year is down to your risk appetite and personal motivations. Prospective home buyers should weigh the potential benefits of waiting against the risks associated with market volatility and other external factors. You wouldn’t want to miss on the property that ticks all the boxes now and then find yourself in a market that hasn’t significantly changed and face more competition.
If you are concerned or have questions I would recommend speaking with a mortgage broker who can help keep you staying informed on the market conditions and support you through your home-buying journey.