First time buyers boost mortgage deals - Mortgages - News - Moneyfacts

News

First time buyers boost mortgage deals

First time buyers boost mortgage deals

Category: Mortgages

Updated: 13/04/2012
First Published: 13/04/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.


First time buyers significantly boosted the number of mortgage deals in March, as they looked to beat the stamp duty holiday deadline.



Figures from LSL Property Services show that the number of mortgage transactions rose by almost
a third (32%) during March.



The number of completed deals was also up by 10% on February.



It is estimated that 60,000 mortgages were rubber-stamped in March – a level not seen since 2008.



First time buyers buying before the 24 March cut-off date were able to side-step the 1% levy on homes worth between £125,000 and £250,000 – equating to a saving of between £1,250 and £2,500.



The data supports other recent research which found the number of first time buyer transactions and enquiries increased considerably in the months preceding the end of the stamp duty holiday.



It is also thought that the heavy tax announced in the Budget for multi-million pound homes could have inflated figures.



"The Chancellor's surprise announcement of the 7% super-rate of stamp duty for properties worth more than £2 million meant many high-value transactions were also rushed through on budget day," commented David Brown, commercial director of LSL Property Services.



Although a relatively busy month, the average house price in England and Wales only increased minimally, up by 0.2% in February to £221,543.



"March's modest price increase indicates that, although transaction numbers rose rapidly last month, the bulk of the activity was for properties below the £250,000 threshold," added Mr Brown.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.

Fee-free mortgages on the rise

Mortgage rates may be at record lows, but for some people, the extra costs associated can make switching deals a financial impossibility. It’ll come as welcome news, then, that the number of fee-free deals has more than doubled over the past year!
 
Close