Ian Giles, Marketing Director of Purely Mortgages, comments, “We have a full sales pipelineof people who are definitely looking to remortgage or purchase but for emotional rather than rational reasons are deferring their decision to go ahead until after the election is over. I have no doubt that the floodgates will open after May 5 as the reasons for hesitation disappear.
“Our advice to anyone sitting on their mortgage decision is not to languish on expensive SVRs - while waiting for more ‘certainty’ is understandable from an emotional point of view, it is also irrational because it results in consumers being worse off financially.”
For example Purely Mortgages estimates that for every month a borrower with a £100,000 interest only mortgage on 6.75% SVR waits, it costs him or her £189.17 extra in monthly payments than the market-leading 4.48% 2 year discount product from the Portman Building Society.
