Keir Starmer’s resignation has created political uncertainty, which could have implications for mortgage rates in the months ahead. We look at what it means for borrowers.
You don’t have to be an avid follower of the news to know that Prime Minister Keir Starmer resigned on Monday. Starmer says he will remain as PM until Labour chooses a new leader. This may not happen until September but could be sooner if the party gets strongly behind one candidate.
Swap rates and mortgage pricing
Political uncertainty like this can cause investors to worry about government borrowing. This means that swap rates – which influence mortgage pricing – could rise at some point soon.
If swap rates increase, lenders may increase their fixed mortgage rates. While this is not definite yet and it’s impossible to make firm predictions, don’t leave things to chance.
If you have a fixed-rate mortgage deal due to expire in the next six months, we strongly advise you to seek advice.
We actively monitor the market. This means that, should rates come down at a later date, we will resubmit your application at no extra cost to you. Either way, you’ll benefit from any potential savings and can feel reassured that you have obtained the lowest available rate.
What if you're a landlord?
Turning back to politics, it’s no secret that Andy Burnham is the most likely successor to Keir Starmer. Burnham won the Makerfield by-election last Thursday by more than 9000 votes.
If you’re a landlord, you may know that Burnham has repeatedly called for lower rents. In 2023, he wrote to the government requesting powers to impose rent controls in Greater Manchester. This could indicate greater government control over the private rented sector. If you have a buy-to-let property and want some advice, it’s worth speaking to an experienced mortgage broker.
We started 2026 talking about a stable property market and a fairly peaceful outlook. In reality, things have been very different, largely due to the war and recent political events. It’s hard to feel certain about anything, but we can reassure you that we’re here to help.