January drop off inevitable
Commenting on the CML data published today, he said: “January’s sharp drop-off in house purchases was inevitable given the stamp duty holiday that ended in December and so we’re not considering this data to be a set-back. It was always on the cards given the sheer number of first time buyers who rushed to complete before the New Year, not to mention the Siberian weather we experienced in January.
“More important is that the mortgage market as a whole is trending upwards. There are more products, more products at higher LTVs and more competition on rate among the main players. February, for example, was our busiest month for nearly two years.
“Despite this, it will, of course, remain difficult for anyone who doesn’t satisfy the requisite borrowing criteria to obtain a loan.
“Homeowners are clearly continuing to enjoy low rates and are reverting to their lender’s standard variable rate rather than remortgaging. But they need to be aware that standard variable rates are slowly being raised across the board with no reference to the base rate.”