The demand for home loans in the UK is expected to decline after the end of the stamp duty holiday, with many calling for an extension to help boost purchases following the announcement of an increase in mortgage packages offered by lenders.
Borrowers could save on the stamp duty for two years if they are first-time buyers and acquire property that cost less than £250,000 (S$501,293). However, the stamp duty holiday, which is ending on 24 March 2012, has led to an increase in home buying activities to take advantage of savings.
Latest figures from the Council of Mortgage Lenders (CML) show that nearly 36,000 mortgages came from first-time buyers in January, a rise of 23 percent.
However, the increase in home purchases came at a time when demand for remortgages was declining. CML figures showed that remortgages in January hit 26,600, down from the previous month’s 28,200.
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