Mortgage lending levels decline for home-movers.
March experienced a huge surge in mortgage lending as buyers rushed to purchase before the end of the Government's Stamp Duty holiday.
At the time it was predicted a significant drop in lending would be seen the following month, and according to figures recently released by the Council of Mortgage Lenders this is exactly what happened.
The Government withdrew the Stamp Duty holiday at the end of March saying that it had never made the impact desired and that lending levels had not seen much improvement as a result.
However some would say that the rush to buy before the end of the concession and the drop in lending the month after its demise, is perhaps proof that the Government got it wrong.
The largest drop in lending was in the first-time buyer sector with lending falling by almost 50%.
Home movers were also significantly affected, the numbers purchasing new property and moving fell by 15% between March and April this year.
Data from the CML also reveals that those looking to purchase and remortgage are now taking on capital repayment mortgage products. Which is perhaps a reflection of the tightening of interest only mortgage lending, where often the minimum deposit required is 50% and an adequate form of eventual repayment must be shown.
If you are looking for a competitive mortgage do not delay, contact Deal Direct today.
