17 Apr

Buyers face mortgage and stamp duty issues

Buyers face mortgage and stamp duty issues

Many people hoping to move home have decided not to because of the issues surrounding mortgage availability and stamp duty liabilities.

Research from the Nottingham Building Society found 11 per cent of homeowners have wanted to move property in the last three years, but gave up because of a variety of financial reasons.

Eight per cent believed the cost of stamp duty was too much, while three per cent failed to be able to secure a mortgage offer. In particular, younger homeowners were deterred from house hunting because of the potential stamp duty bill they would face if they did relocate.

Affordability was also a major factor for wannabe house movers, with 30 per cent explaining they cannot afford the cost of a new property so are focusing on improving their current property, while 25 per cent said they are unable to find a suitable house to meet their budget.

"The mortgage market is generally performing well with growth in remortgaging and for loans to first time buyers with strong competition from lenders. There are a wide range of deals and advice available for all types of borrowers but the home moving market is still not expanding which points to wider issues than simply mortgages or stamp duty as the blocks in the market," said Ian Gibbons, senior mortgage broking manager at Nottingham Mortgage Services.

"Home movers clearly are also struggling to find suitable homes to move to which turns the spotlight on improving their existing homes rather than moving. The key to remortgaging successfully is to search the market for the most appropriate deal and to get advice on options particularly for older borrowers who may need to extend their loan into retirement," he added.ADNFCR-1222-ID-801834762-ADNFCR

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