Fiona continues:
“There has definitely been some movement in the mortgage market since the start of the year. Although I am not a full time mortgage broker, I have certainly seen quite an increase in new business in this field compared to 2011.
“This is partly attributable to the exemption from stamp duty (until the 24th March) for first time buyers purchasing properties worth up to £250,000 and partly mortgage lenders doing their bit to help the market by being innovative. The Coventry was recently offering an excellent fixed rate deal with no redemption penalties, although such offers are snapped up very quickly.
“I am also seeing strong demand for re-mortgages, as households which have been locked into long-term fixed rate deals due to redemption penalties, now being able to switch to lower rates.
“On the other hand, some lenders are tightening their criteria by requiring larger deposits of up to 40% and restricting interest only mortgages without a valid repayment vehicle. The latter is probably more of a defensive move whilst property prices remain stagnant but it does make it difficult for first time buyers and for those already on interest only mortgages seeking new deals.
"I hope the Chancellor maintains the stamp duty exemption in his March budget, as first time buyers need all the help they can get right now.”
