Triple trouble for house sales: Backlog could see THOUSANDS miss out on stamp duty holiday as number of mortgage deals halves and cost of a two-year fixed deal goes up by £600 mortgage
- Figures show 325,000 buyers will not complete before the March 31 deadline mortgage
- Buyers are also facing rising interest rates on mortgage deals
- There are delays in everything from buyers securing mortgages, to getting searches done and to completing all the legal paperwork
Homebuyers are facing a triple blow which could see hundreds of thousands miss out on mortgage
the Chancellor’s stamp duty holiday because of delays in getting purchases over the line.
New figures suggest some 325,000 buyers will not complete before the March 31
deadline because of issues with conveyancing, surveying, mortgage and search services.
At the same time, buyers are also facing rising interest rates on mortgage deals, with
borrowers now typically having to pay £600 more over the course of a two-year fixed deal than at the start
And there is a mortgage deal drought, with the number on offer from banks and building societies halving .
Earlier this year, the Chancellor increased the threshold for paying stamp mortgage
duty from £125,000 to £500,000 until the end of March next year.
The move saves buyers an average of £4,400, with savings of up to £15,000 for properties worth
However, the property market, from lenders to solicitors, is currently struggling to
cope with unprecedented demand from buyers looking to cash in on the tax holiday.
There are delays in everything from buyers securing mortgages, to getting searches done and to completing
It is currently taking buyers an average of 160 days – more than five months – to go from
agreeing a sale to moving in, up from 95 days last year according to property data analysts TwentyCi.
But there is also increasingly less choice for buyers with medium and even large deposits.
There are now just 125 two-year deals for those with a 15 per cent deposit,
down from 264 in March, according to separate data from Moneyfacts.
The number of five-year deals for those who can put down 20 per cent has dropped from 257 to 164.