Here’s a stat that could swing the election, if it indeed needs swinging. Many thousands of fixed rate deals are due to come to an end, and the fact that interest rates won’t be changing this month (it would be seen as a political move by the BofE were they to reduce them, even if there were good reason to do so) means that what’s available will be much worse. And if you’re a Conservative ‘on the doorstep’ with someone who’s just found they’re going to be paying an extra £250 per month (the average increase, apparently), blaming world events, Covid or anything other than the current government and Liz Truss is unlikely to improve your reception. In June 2022, 2% or a bit less was the average available 2 year fixed rate. Now it’s around 5%, which, however you look at or dress it up, is a big jump and is bound to hurt. That your pain is helping to control inflation is not the best vote-winning message. So maybe just smile and blame Gordon Brown (kids etc.); or the boats.
“Conveyancers urged to prepare for squeeze as mortgage costs climb to 85% of household income”
So the rub is coming, and here we’ll see the delayed and probably unintended consequence of using the blunt weapon of interest rates to ‘conquer’ inflation.
