Stamp duty deadline boosts mortgage lending - 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.

Stamp duty deadline boosts mortgage lending

Stamp duty deadline boosts mortgage lending

Category: Mortgages

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

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 It is now over 6 months old so the content may be out of date.

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 Any products featured may be withdrawn by their provider or changed at any time.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

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