So, it’s official. No more speculation. And for the Government, no more hiding. The general election will take place on Thursday 4 July. And whilst it means many things to many people, we’re specifically looking at what it means for those applying for a mortgage.

As a Guildford mortgage broker that’s been in business since 2005, we’ve seen four general elections. And whilst our team of Surrey mortgage advisers has changed during the intervening years, the general uncertainty that a general election brings remains the same.

Things can only get better 

Poor old Rishi. If he wasn’t facing biblical rain whilst trying to address the nation, he was having to concentrate hard to overcome the fact that someone in the crowd was playing the soundtrack to Tony Blair’s election win in 1997 – D:Ream’s Things can only get better. 

But it’s a pertinent title, and one that raises the question of can things actually get better for the mortgage markets and the homeowners who need to borrow to buy?

Mortgage rates have been up and down for some time now. And, in the run up to the big day, we expect the mortgage rate rollercoaster to continue.

Not necessarily as a result of whether or not the Bank of England (BoE) will cut the base rate, or even the impact that swap rates inevitably has on the price of fixed rate mortgages. But simply because confidence starts to fade as people tend to sit on their hands and avoid making big decisions until the results are in.

The calm after the storm

However, there’s one thing that being a mortgage broker in Guildford during four general elections has taught us, which is that life goes on – and pretty quickly, too.

So, this is how we see the next few months panning out. There will be a slowdown in the number of people applying for a mortgage between now and 4 July. Then, once a decision has been made – and irrespective of whether it’s a Conservative or Labour government – confidence will return. By the end of summer, we expect to be inundated with enquiries from people looking for the best UK mortgage deals.

Not only that, but by the end of summer – and if inflation continues to fall (and at 2.3%, we’re not far off the BoE’s 2% target) – we would expect to see the first base rate cut take place, the result of which is likely to make mortgage rates fall.

So, yes. Things can only get better, in our view at least. Not just because we’re a Surrey mortgage broker. But because we genuinely think that after a turbulent couple of years, the pendulum is about to swing the other way.

As a result, our advice would be to start cueing up your mortgage application so that amongst the influx of enquires we expect to be handling pre-autumn, yours is somewhere near the top of the pile.

To discuss getting a mortgage against the backdrop of a general election, contact Complete Mortgages’ team of Guildford mortgage advisers on 01483 238280 or e-mail info@complete-mortgages.co.uk.