Stamp duty changes create mortgage lending boost
Figures provided by the Council of Mortgage Lenders show that there has recently been the biggest rise in mortgage lending since 2007 happening in the UK.
Mortgage lending rates reached an incredible £25.7 billion in March, a 43% increase when compared with February and a 59% increase when compared to March 2015.
Why has there been such a huge increase in lending?
The increase has been put down to buy-to-let and second home buyers rushing through their purchases to beat a planned rise in stamp duty tax, which was introduced at the beginning of April. This means that experts have predicted that lending rates will soon go back to normal.
However, despite their claims, it is not unusual for a property boom to begin in the springtime as this is often a busy time in the property sector. In the winter months the number of people selling and buying property tends to quiet down but picks up speed again in the spring time as home owners banish the winter blues and consider moving.
Buy-to-let has grown in popularity in recent years and often proves to be a great source of income for the owner of the property. However finding the right property, suitable tenants and understanding fees and taxes as well as your responsibilities as a landlord are all key to making it a success. For everything you need to know please read our free buy-to-let guide.