First time buyers rushing to buy before the change in Stamp duty next spring drove up mortgage activity in November. The total number of valuations conducted during the month grew by 3% compared to October. Although the total number of valuations conducted by Connells Survey and Valuation in November represented an annual rise of 73%.
‘In November first time buyers exploited a short window of opportunity as rates for higher LTV mortgages improved briefly. With house prices steadily declining, affordability has improved for new buyers, many of those able to secure mortgages have been acting quickly to complete before Christmas,’ said John Bagshaw, corporate services director of Connells.
‘Following the Chancellor’s decision not to extend to stamp duty holiday for first time buyers, activity will be elevated in the short term as buyers look to move before March. But in the long term, the recovery of transactions will be led by lenders’ ability to unlock the lower tier of the market,’ he explained.
‘The new mortgage indemnity scheme is a step in the right direction but the threat of the Eurozone crisis combined with the abolition of the stamp duty holiday may undermine its impact in the coming year,’ he added.
If you are a first time buyer and would like some help purchasing your first property before the stamp duty hike then why not get in touch with your local branch of Intercounty.
Source: Mortgage Strategy