The election may be the reasoning behind a slow-down in the housing market which translates to a shift down in the lending market. Despite the usual seasonal increase in property sales, experts believe there will be sluggish movement of those homes for sale on the market until after the election.

Online property lister, Righmove, announced that there had been a reduction in the number of homes put up for sale in the last quarter. With less supply, the average house price will likely see an increase even with tight sales due to the slow down on the housing market because asking prices are high.

While homeowners seeking to stay put and not move home may feel they have no irons in the fire when it comes to the housing market, they would be mistaken. How the housing market is performing has an impact on the overall economy and more personally how it is performing in relation to the lending market will impact those seeking to remortgage.

Remortgage deals are currently very attractive and homeowners nearing the end of their mortgage deal and those already converted to their lender’s risky standard variable rate (SVR) will find that some interest rates being offered are at the lowest level in history for many lenders.

Much of the reasoning behind the low interest rates is low demand for mortgage lending. There are other factors such as the overall global economy and the cost of lending, but the low demand for both remortgages and new purchase mortgages has led to a competitive environment in mortgage lending. Lenders are competing for customers and that offers an opportunity for homeowners to grab a cheap remortgage deal.

After the election, a shift in trends is expected and lenders may very well begin pulling their cheapest interest rates prior to the summer.