CML: Borrowers avoid stamp duty in September but sales down

Date:Wednesday 12th November 2008

Half of borrowers escaped stamp duty in September, new data from the Council of Mortgage Lenders (CML) has shown.

But the number of loans for house purchase was down by 57 per cent on September last year.

In the month, there were 35,000 house purchase loans worth £5 billion, showing a 15 per cent drop in both volume and value from August.

Furthermore, the 62,000 remortgage loans, worth £8.5 billion in September, also showed a volume drop of 15 per cent and a value fall of 16 per cent from the previous month.

CML director general Michael Coogan said that mortgage lending flow should get better if the cost and volume of interbank lending carries on improving.

Meanwhile, Safe Home Income Plans has urged Trading Standards to take action against sale and rent back firms with misleading advertising.

The organisation, which represents 90 per cent of regulated UK equity release providers, said that many websites do not clearly tell people the risks involved in sale and rent back schemes.

It added that some providers misleadingly compare products to those regulated by the Financial Services Authority.