One of the near certainties as the General Election gets nearer is that it will be a close-run thing.  A new coalition looks less likely with confidence and supply agreements being the order of the day.  Should this arise, the biggest casualty will our capital markets and funding cost will have to rise.  So although base rate is likely to stay low, we could well see swap rates increase rapidly.  This will feed through to mortgage rates quite quickly.

Never has there been a need to get clients engaged to re-mortgage, as we are seeing rates that are not sustainable in the long term.  Despite the view from some on the FPC that rates could fall, the remedy would more likely be more QE than rate cuts.  It is essential that firms get in touch with all those who they think might benefit and persuade them that now is a good time to act.  Those building societies that are leading the way on using transitionals for new customers should be lauded and more encouraged to join them.  The industry needs to get all those that are mortgage prisoners freed and into products and lenders that will suit them for the longer term.