View more on these topics

Stamp duty and mortgage issues scupper 10% of home moves

Home-House-Monopoly-Money-Property-700x450.jpg

More than one in 10 homeowners have tried and failed to move house due to stamp duty or mortgage issues, new Nottingham Building Society research shows.

The lender’s study found 11 per cent of mortgage customers – equivalent to around 1.2 million homeowners – gave up plans to move house in the past three years due to financial issues including mortgages.

The cost of stamp duty stopped around one in 12 homeowners (8 per cent) while 3 per cent of owners – around 327,000 people – were turned down for mortgages.

Younger home movers – those aged between 18 and 44 – were most likely to be put off by the cost of stamp duty. Around 14 per cent who had given up buying blamed stamp duty.

The Nottingham’s research shows the biggest block on home moving was a lack of suitable houses to move to.

Around 25 per cent of homeowners questioned said they had looked but could not find a suitable house.

However around 30 per cent of homeowners said they cannot currently afford to move home so are concentrating on improving their house.

Around one in five say they cannot find a better house to move to.

The research follows the announcement from the Council for Mortgage Lenders that the “lull in moving activity appears stubbornly persistent” across the UK market and that it plans to launch a study into “why the number of transactions seems in secular decline”.

Its most recent mortgage market data shows around £4.9bn was lent for home movers in January, 4 per cent lower than the previous year.

Nottingham Mortgage Services senior mortgage broking manager Ian Gibbons says: “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.

“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.”

Recommended

House-and-Calculator-Mortgage-Property-700.jpg

Government delay to stamp duty window cut will cost £105m

The Government has delayed its plans to cut the payment window for stamp duty by one year, according to Budget documents. The 2015 Autumn Statement mooted plans to cut the payment window from 30 days to 14 days, starting from the 2017/18 year. The cut is designed to streamline the stamp duty payment process and […]

Parliament-Building-UK-London-700x450.jpg
1

Budget should reform stamp duty and ease housing shortage, say experts

Mortgage experts are calling for stamp duty reform and increased homebuilding as part of the Budget this Wednesday. Yorkshire Building Society chief economist Andrew McPhillips says stamp duty in its current form pushes up cost for buyers, worsening affordability problems. He says: “Levying the charge against sellers rather than buyers will help to reduce costs […]

Home-House-Monopoly-Money-Property-700x450.jpg

Barclays launches stamp duty cashback mortgages

Barclays is launching a fixed-rate mortgage that lets first-time buyers and homemovers recover some or all of the stamp duty on their home. The Barclays Homebuyer Cashback mortgage will give up to £2,500 cashback on mortgages greater than £150,000 and up to £500,000. Cashback of £1,250 is available on mortgages between £100,000 – £150,000 to […]