News: Demand for Mortgages Rises in Light of Stamp Duty Change
Since the recent surge of Buy-to-Let purchases in light of George Osborne’s 3% Stamp Duty surcharge changes in April, UK mortgage lending rose by 43% in March compared to February. High demand for properties before the changes saw more and more people make a last-minute dash to buy, resulting in mortgage lending figures skyrocketing to £25.7 billion.
A spokesperson for Property Wire says, “The distortion caused by this stamp duty change appears to be larger than any previous stamp duty change we’ve seen. As a result, we expect there will be about 10,000 fewer mortgaged transactions each month in the second quarter of 2016 than would otherwise have been the case, offsetting the increase in activity seen in March.”
With the property market set to transform hugely now that the changes have been introduced, buying, letting and investing in property may become more difficult for homeowners and landlords.
What can you do?
If you are worried about how these changes will affect your financial ability to purchase a buy-to-let property, there are a number of options available. Borrowing from the bank is one of the most obvious choices open to property buyers in order to cover a mortgage – however, slow turnarounds and inflated interest rates are common issues.
Short term finance in the form of bridging loans can help you make that initial purchase of a property, without the delays, even if the property is not perfect, e.g. it has no kitchen or bathroom. The flexibility of these loans from start to finish makes it easier for you to secure your dream holiday home or next Buy-to-Let investment.
How can Affirmative help you?
At Affirmative, our bridging loans suit many purposes, providing the necessary funding needed to close property deals and complete purchase transactions. Take a look at our case studies to find out how we have helped people in the past, including the completion of a London flat purchase for a client whose Buy-to-Let mortgage fell through at the last minute.
Get in touch with our Manchester office on 0800 044 8484, or send us an email to firstname.lastname@example.org, and we will be in touch shortly to discuss your finance options.