As we write this, we are less than two weeks away from the general election, which was surprisingly called for July 4th.
Our clients are asking if they should wait before moving forward with a new property purchase to see what happens after the election? As always, our view is that any decision on a property purchase should be based around your personal circumstances and not simply because of the wider economic situation.
Of course, you will have to take certain things into account, but nobody knows if the outcome of the election, whatever that is, will have a positive or negative affect on the mortgage and property market. One thing that is certain is that there will be no rapid change straight after the 4th of July. If we do have a change of government, they may take some time to implement new economic policies and then these will usually take a little while to filter through to the market.
Buying a property is a long-term commitment, so decide what you are doing on your own long-term plans, and not purely on the outcome of an election.
One positive bit of news from the last week was the announcement that inflation has dropped to the government target of 2%. Of course, this still means that things are still much more expensive than they were a couple of years ago, but it does mean the Bank of England can seriously look to reduce the base rate of interest in the coming months. We don’t expect a sudden reaction to this news, but a rate reduction seems more likely later in the summer.
Please get in touch with Barlow Irvin Financial Services award-winning team if you need expert mortgage and protection insurance advice.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.