Stamp duty deadline boosts mortgage lending - Mortgages - News - Moneyfacts


Stamp duty deadline boosts mortgage lending

Stamp duty deadline boosts mortgage lending

Category: Mortgages

Updated: 23/04/2012
First Published: 23/04/2012

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 It is now over 6 months old so the content may be out of date.

Mortgage lending in March was boosted by first time buyers looking to beat the end of the stamp duty holiday.

First time buyers had until 24 March to rubber stamp their house deal if they wanted to side-step the 1% tax on properties worth between £125,000 and £250,000.

And figures from the Council of Mortgage Lenders (CML) show that many did just that, with mortgage lending in March totalling £13.4 billion – a 30% rise from £10.3 billion in February and a 17% rise from March 2011 (£11.4 billion).

This is the highest monthly total since September 2011 (£13.6 billion) and the highest monthly total for March since 2008 (£23.9 billion).

Gross lending for the first quarter of this year was therefore an estimated £34.4 billion, down from £37.8 billion in the previous quarter but a 13% increase from the first three months of 2011 (£30.3 billion).

"The increase in our March lending estimate appears to be almost entirely due to stronger house purchase activity," said Bob Pannell, chief economist of the CML.

"The most likely explanation is that buyers wanted to complete their transactions before the end of the stamp duty concession on 24 March.

"The underlying picture for house purchase activity has been relatively buoyant in recent months.

"However, we would be surprised if we did not see a drop in transactions over the next few months, following the end of the stamp duty concession, especially as it will take some while for NewBuy transaction levels to build."

Find the best mortgage rate - Compare best selling 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 Any products featured may be withdrawn by their provider or changed at any time.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

Does your mortgage lender owe you money?

Earlier this week, the financial watchdog revealed that hundreds of thousands of mortgage holders could have been overcharged by their lender. Are you one of the many who could be in line for a windfall?

Do you think your home will rise in value?

There’s been a lot of talk recently about the rate of house price growth slowing, but is it affecting your personal expectations? According to research, it could be, with fewer people now expecting the value of their property to increase.

Confidence among “second steppers” is on the rise

We all know how difficult it can be taking that first step on the ladder, but what about the second step? In many cases, getting onto the next rung can be just as challenging, but happily, confidence among this cohort appears to be on the rise.