Mortgage rates are not directly set by the government but rather by lenders influenced from factors such as the Bank of England base rate of interest and general Inflation. Events such as elections can impact interest rates due to the uncertainty.

Data from Mojo Mortgages helps us to understand the changes in mortgage rates since the announcement of the election 2024.

  • The average swap rate for a two year fixed deal rose form 4.5% to 4.7%, this has fallen back to 4.5% now.
  • The average fixed mortgage rate across five of the biggest lender rose from 5% to 5.1%.
  • Certain lenders such as, HSBC, TSB and Barclays have increased rates on selected mortgage products.


The chance of Mortgage rates falling

Anyone trying to buy a home for the first time, those renewing their mortgage or anyone with a standard rate mortgage will be hoping for a decrease in mortgage rates after the election, but what are the chances of this happening?

The Bank of England have remained consistent with their interest rates at 5.25% since last August due to the high inflation. However, with inflation having fallen to 2.3% recently many have believed there is a high chance for a reduction.

The Bank of England will next announce their new base rate on the 20th June.

They must feel the inflation rate is steady and that uncertain election matter won’t drastically change anything for a reduction to occur on this next announcement.

With wage growth remaining strong and an uncertain outcome for the election the come, the Bank of England could very well hold off on any reductions.


How mortgage rates affect the election

Mortgage rates are one of the top factors which impact voters choices. When political parties include policies to bring mortgage rates down when they have been soaring in the past parliament this could persuade votes.

Since the conservatives have been in parliament since 2010, Mojo Mortgage reveals that house prices have increased 65%.


House prices affected by the election

New sales tend to stall from the announcement of an election as the feeling of uncertainty for the housing market persuades buyers and sellers to press pause and wait for the outcome.

The average age of a first time home buyer has increased over the years with the challenge of getting on the property market increasing with prices. If mortgage rates do go down then buyers could gain confidence boosting the market.

With both Labour and Conservative parties being fairly vague on what will happen to the housing market there has been a smaller impact than in previous election years, Zoopla have found.