Mortgage News
Tory win ‘will not affect housing market’
Savills Private Finance (SPF) has revealed that over half (53%) of its clients believe that a Conservative Government in power would have no effect on house prices and mortgage availability.
A further 35% said a change in Government would be a positive influence, while 10% thought the impact of the Conservatives would be negative. The survey cited the lack of mortgage products as the main reason for low remortgaging acitivity.
More than half of homeowners said an increase in product choice or eligibility, rather than interest rates, would be a key factor in persuading them to remortgage.
Melanie Bien, director of SPF, said many borrowers are on standard variable deals (SVRs) because there is a dearth of products to choose from.
She explained: “Many have very little equity in their homes so they cannot remortgage to a new fixed or discounted deal. With lenders starting to raise their SVRs, even though there has been no movement in interest rates, many are finding themselves caught between a rock and a hard place.”
Michael Brill, director at Baronworth, added: “Recently, there have been more mortgage products and lending criteria is beginning to ease which will make more of an impact than a change in Government could ever do.”
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