Rush to beat stamp duty deadline - Mortgages - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Rush to beat stamp duty deadline

Rush to beat stamp duty deadline

Category: Mortgages

Updated: 12/02/2010
First Published: 12/02/2010

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 It is now over 6 months old so the content may be out of date.
A last minute rush to take advantage of the stamp duty holiday saw the number of loans to first time buyers hit a two-year high in December.

The latest figures from the Council of Mortgage Lenders (CML) showed that 55% of house purchase loans during December were on properties costing under £175,000 and therefore exempt from stamp duty, up from 51% in November.

Meanwhile, 10,300 first time buyers and 11,200 home movers bought a property of between £125,000 and £175,000 in December, up 63% and 49% respectively from November.

Home buyers within this price bracket who failed to complete their purchase before January now face having to pay an additional 1% of the purchase price as a consequence of the stamp duty holiday drawing to a close.

A temporary stamp duty threshold of £175,000 was introduced in September 2008 as the Government attempted to prop up the floundering property market.

However, the concession came to an end at the end of 2009, with the usual level of £125,000 coming back into effect.

"The stamp duty holiday has been a source of respite for beleaguered buyers who have been trying to achieve something that should be available to as many people as possible - to own their own homes," said Peter Bolton-King, chief executive of the National Association of Estate Agents.

"These new figures confirm what our agents have been telling us - the buyers are out there but they just cannot get that first foot on the property ladder because of the amount of money required up front."

Find the best mortgage for you - Compare first time buyer mortgages

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 Any products featured may be withdrawn by their provider or changed at any time.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

Homeowners underestimate remortgaging savings

Remortgaging has been enjoying a surge in popularity in recent months, and considering how much you could save, it’s a no-brainer! Unfortunately, many fail to realise the extent of potential savings, which could mean too few make the switch.

Mortgage rates at fresh lows – but it may not last

Average fixed mortgage rates continued to fall this month, however much of this could be a technical adjustment rather than an indication of ongoing rate cuts – which means it may be worth switching to a new fixed rate deal sooner rather than later.

10-year fixed mortgage market flourishes

Given upcoming negotiations on the UK’s relationship with the EU, we are expected to have some uncertain times ahead. As a result, many borrowers will be seeking long-term mortgage repayment security, and happily, the 10-year market is flourishing.
 
Close