Mortgage transactions decline following the end of the stamp duty holiday.

Recent figures reveal mortgage transactions dropped by 18 percent for the month that followed the end of the stamp duty holiday.  On a slightly more positive note property prices managed to remain relatively stable, falling just fractionally in April by 0.2 per cent.

The fall in mortgage transactions for April has come as little surprise as the rush to beat the end of stamp duty in March boosted sales. There was a rise in mortgage approvals for March which increased by 32 per cent, but this rise has now been met with a corresponding fall.

The hope was schemes such as NewBuy, lender mortgage incentives such as part payment of stamp duty costs and rising LTV levels would plug the gap felt by the stamp duty loss. However figures reveal that this has so far not happened.

Factors such as rising unemployment and rising inflation are also being attributed to a drop in transactions. Mortgage lending criteria is tightening and rates are on the rise, meaning it will become more difficult to source an affordable deal which could affect transaction levels further.

Mortgage holders have in general had it good for the last few years as mortgage rates have been cheap. The warning is lenders cheapest deals are likely to be restricted over the coming months, suggesting that any would-be buyer or home-owner looking to remortgage should make a move soon.

Lenders mortgage rates currently on offer are still competitive from a historical perspective, but with rising SVRs it is predicted access to the cheapest deals could come to an end in the coming months.

Contact Deal Direct today and we will source a competitive mortgage deal for you.