The overall popularity of flexible loans is declining, thanks in a large part to the current state of the housing market. Other concerns on the stamp duty changes are also sparking a lack of interest in flexible loans and many consumers perceive them as being unsafe at this time. While rates are this high, many home buyers are preferring to wait out the changes and see what happens with flexible loan prices before they apply. This may be to blame in part for the overall decline in new applications for flexible loans, particularly when coupled with the bad news on this type of loan product.
Matthew Hall, the head of tax services with Wilkins Kennedy stated, ‘Buyers simply believe prices are too high. They don’t want to commit if they believe that prices will continue to drop in the coming months,’ he says.
‘If the government really wants to create more interest and stimulation in the lower end of the property market then they should consider exempting stamp duty on all transactions up to £250,000 coupled with the re-introduction of mortgage interest tax relief for purchases of properties up to that same value,’
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