Jun 15, 2024

Mortgage Rate Hikes Impact Homebuyers Amid Election Campaign

Discover how recent mortgage rate increases during the election campaign are affecting homebuyers and the housing market.

As the election campaign intensifies, major mortgage lenders like Barclays and TSB have announced increases in mortgage rates, affecting both residential and Buy To Let customers. Industry experts express concerns about the timing of these hikes and their impact on the housing market.

During a crucial phase of the election campaign, several prominent mortgage lenders have implemented rate hikes, creating challenges for the housing market. Institutions such as Barclays and TSB have adjusted their mortgage rates upwards by up to 0.35%, impacting a wide range of mortgage products.

Industry professionals have voiced their concerns regarding these adjustments. Justin Moy of EHF Mortgages highlighted that these changes appear more reactionary to market trends rather than current economic indicators, potentially disrupting the prime home buying season. Katy Eatenton of Lifetime Wealth Management noted that these rising rates are sapping the energy from the property market, contrasting sharply with earlier expectations for the year.

Moreover, Stephen Perkins from Yellow Brick Mortgages and Ben Perks of Orchard Financial Advisers discussed the broader economic implications and the potential for future rate improvements due to declining swap rates. However, Dariusz Karpowicz from Albion Financial Advice warned of the adverse effects of political and economic uncertainty on the market, emphasizing the importance for borrowers to remain informed and agile.

The Bottom Line

The recent mortgage rate increases during the election campaign have stirred significant discussion among industry experts and affected the market dynamics. While some see potential for relief with future rate cuts, the prevailing sentiment reflects caution due to ongoing economic and political uncertainties. Homebuyers are advised to stay vigilant and prepared for fluctuations in the mortgage landscape.

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