Help to Buy relaxation is not enough to stimulate the housing market says mortgages.online in Autumn Statement appeal to Chancellor
Leading mortgage platform mortgages.online has welcomed the announcement by the Housing Minister, the Rt Hon Esther McVey on 28 August, removing the loophole preventing Help to Buy borrowers from taking out mortgages for more than 25 years. ‘The extension to 35 years will help many borrowers as their monthly payments will reduce,’ acknowledges Paul Flavin, Managing Director of mortgages.online, ‘but the Chancellor will need to do more in the Autumn Statement on 4 September if the housing market is to overcome its Brexit blues.”
Mortgages.online claim in fact that mortgages under the Help to Buy scheme are currently enjoying strong demand, but that the Buy to Let market is the one to focus on.
‘The increased stamp duty payable on buy to let purchases, and the removal of the ability to offset mortgage costs has put many investors off the property market, with a knock on effect of reducing the stock of rental properties,’ says Paul Flavin, ‘and we would encourage the Chancellor to look again at the negative impact these measures have.’
Releasing the pressure on the Buy to Let market is important in stimulating the market as a whole as the uncertainty over Brexit has left many people reluctant to move. ‘We are seeing potential purchasers nervous about what impact Brexit will have on their jobs, and incomes,’ explains Paul Flavin, ‘which is creating a general lack of confidence and depressed values, exacerbated by valuers being cautious with their valuations, themselves influenced by Brexit fears.’
‘We have two basic messages for the Chancellor. Relief for Buy to Let investors and measures to stabalise the economy with clarity once and for all on Brexit, are both needed urgently.’ Adds Paul Flavin. ‘The alternative is for a continuance of a depressed housing market which is healthy neither for the economy nor the Government if an election is on the horizon.’