Rush to beat stamp duty holiday in evidence again - Mortgages - News - Moneyfacts


Rush to beat stamp duty holiday in evidence again

Rush to beat stamp duty holiday in evidence again

Category: Mortgages

Updated: 23/02/2012
First Published: 23/02/2012

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 It is now over 6 months old so the content may be out of date.

New figures from the British Bankers' Association (BBA) show further evidence of first time buyers racing to beat the stamp duty holiday deadline.

The number of mortgage approvals for house purchases hit a two-year high in January, reaching 38,092.

House purchase numbers are up by more than a third (34%) on January 2011.

The figures have been boosted by first time buyers completing their deals before the stamp duty holiday comes to an end on March 24.

The average value of a mortgage approval in January was £144,400.

Currently, first time buyers are exempt from paying a 1% levy on homes worth up to £250,000.

The decision to end the initiative has come under fire from the Council of Mortgage Lenders, which on Monday announced that mortgage lending increased by 10% in January, boosted by first time buyers.

In addition, the National Association of Estate Agents said it saw more first time buyers than at any point in the previous eight months during January - a month when activity is usually dulled.

Almost a quarter (23% of sales) were made to first time buyers during the month, up from 21% in December and the highest seen since May 2011 (24%).

Other figures from the BBA showed that demand for unsecured lending remained relatively weak.

"January saw the high street banks approve more mortgages for house purchase than of late, despite low household confidence, as some people try to complete transactions before the stamp duty holiday ends in March," said David Dooks, statistics director at the BBA.

"Demand for unsecured personal borrowing remains low as consumers continue to repay debt."

What next?

Find the best Mortgages Best Buys for First Time Buyers - Our team of independent mortgage experts compare the market daily to bring you six of the best mortgages designed for first time buyers; selected specially for their smaller deposits, higher LTV's and lower application fees.

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 Any products featured may be withdrawn by their provider or changed at any time.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

Goodbye to the Help to Buy Guarantee

On 31 December, phase two of the Help to Buy initiative will be withdrawn from the market. It’s certainly done wonders for the high loan-to-value sector, so we thought we’d take a closer look at the significance of the scheme and the effect it’s had.

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.