Recent UK housing market data reveals demand for high value mortgages has declined. The fall in demand is equal to that of the third quarter of the year 2008. Not only has demand for high value mortgages fallen, but demand for all mortgages has decreased in the first quarter of this year. There is more than one theory for the fall. Many however are in agreement that the general election has much to do with influencing activity within the market.

Remortgage activity has been fairly strong with several lending institutions standing toe to toe and making attractive deals available in search of more business. Remortgage demand, as well as other lending demand is expected to increase with consistently warmer weather and the conclusion of the general election.

Jonathan Samuels, chief executive of Dragonfly Property Finance, commented on the recent data, saying: "For demand to have fallen particularly sharply at the upper end of the market underlines the sensitivity of this demographic to political uncertainty.”

Samuels added: "Many prime and super-prime buyers are sitting on their hands and want to see what the next government looks like before they commit to a purchase. That this is the most uncertain election in decades has certainly triggered more caution at this level of the market than normal."

Uncertainty surrounding the UK housing market is creating many would be lenders to hold off on making decisions regarding mortgage lending for an original loan or a remortgage. There are currently many attractive deals to take advantage of, especially in the midst of so much lender competition.