What does the snap election mean for your finances?

As the nation braces itself for the snap general election, many will be wondering what impact the campaign will have on their finances.

Prime Minister Theresa May’s bid for a huge Tory majority has already given sterling a major boost, while sinking the benchmark FTSE 100 index.

The housing market could also wobble if buyers delay their purchases until after polling day on June 8.

The next few weeks will see politicians making plenty of financial promises in a bid to buy votes, with many aimed squarely at pensioners. Should you be voting with your pocket?

Holiday fun

There was instant good news for holidaymakers as the pound soared to a six-month high against the euro, US dollar and other major currencies.

Markets decided that a Conservative landslide would strengthen the Prime Minister’s hand when bargaining with the EU, and this boosted the pound.

Britons responded by loading up on currency ahead of their summer getaway, with the Post Office reporting a near 150 per cent surge in online currency sales.

Post Office Travel Money spokesman Andrew Brown says: “Holidaymakers are buying their foreign money early to take advantage of improving exchange rates.”

In October the pound bought just €1.077, but this week it fetched more than €1.19, an increase of more than 10 per cent, giving somebody exchanging £500 into euros an extra €57 of spending money.

Similarly, sterling has jumped from $1.186 to $1.279, a climb of nearly 8 per cent, worth an extra $47 for every £500 of US currency.

Brown says holidaymakers should watch future movements to calculate the best time to purchase travel cash.

Kathleen Brooks, research director at City Index Direct, says holidaymakers should look forward to further strengthening: “The pound looks good as we head towards the election and could have further to go on the upside.”

A stronger pound could also keep a lid on rising inflation, by cutting the cost of imported goods, especially with the oil price falling last week.