Mortgage rates: Scotland sees HUGE plunge in sales thanks to THIS
MORTGAGE sales have plummeted across every region in the UK, and more volatility is predicted in the coming months.
Mortgage rates: Sales plummeted in April
Mortgage sales for the UK fell by £2.62 billion in April, down 16 per cent on the previous month, according to Equifax Touchstone analysis of the intermediary marketplace.
Buy-to-let figures plunged 20.4 per cent (£0.55 billion) to £2.15 billion and residential followed suit, dropping by 15.1 per cent (£2.07 billion) to £11.60 billion. Overall, mortgage sales for the month dropped to £13.76 billion.
Every region across the UK witnessed a slump in sales. The North and Yorkshire region led the way with the steepest drop of 18.5 per cent, followed closely by London and the Home counties, with sales falling by 17.5 per cent and 17.0 per cent respectively.
The rest of the regions fell by the following:
Scotland - 16.7 per cent
South West - 16.5 per cent
North East - 16.2 per cent
Midlands - 15.2 per cent
Wales - 15 per cent
South East - 13. 5 per cent
South Coast - 13.5 per cent
North West - 13.2 per cent
Northern Ireland - 11.1 per cent
Mortgage rates: Sales fell by £2.62 billion in April
Mortgage figures have nosedived following a strong first quarter, with every single region experiencing a notable slump in sales.
John Driscoll, Director at Equifax Touchstone, said: “Mortgage figures have nosedived following a strong first quarter, with every single region experiencing a notable slump in sales.
“Government measures to cool buy-to-let property sales, including the phased cuts to mortgage interest tax relief which started on 1 April, have no doubt played a role in diminishing sales figures last month.
“This government intervention, coupled with uncertainty surrounding the election, means we’re likely to see more volatility in coming months.
“The big question is where figures will go from here – this time of year is traditionally fairly buoyant for house-buying, but there may be too much uncertainty on the horizon to see an immediate rebound.”
Martin Lewis: How to save money on your mortgage
The data from Equifax Touchstone, which covers the majority of the intermediated lending market, shows that the average value of a residential mortgage in April was £198,347 (2016: £192,255) and £153,900 for buy-to-let (2016: £158,335).
While low interest rates are painful for savers, they’re a blessing for mortgage borrowers.
Seizing this opportunity and making small monthly mortgage repayments could cut borrowing further, according to This is Money.
Mortgage rates: Buy-to-let figures plunged 20.4 per cent
By overpaying on a mortgage, homeowners can reduce their value of debt quickly and get a better turn on cash.
Small monthly overpayments can even make a difference - but this doesn’t come without pitfalls.
According to This is Money, most lenders will allow you to make overpayments on your mortgage without incurring a penalty. This is usually equivalent to 10 per cent of the mortgage debt each year.
Atom Bank, Metro Bank and Tesco Bank allow up to 20 per cent to be repaid penalty-free each year.