This figure does not realistically relate to the huge inflation in house prices over recent years as the average property value for borrowers in this sector is £138,000* - only £12,000 less the UK average.
Jeff Knight, Head of Marketing at GMAC-RFC, commented: “Any move in stamp duty is a good thing, but I would have liked to have seen a higher level than this. The average house price for non conforming borrowers is still 15% higher than the stamp duty threshold. This places an additional financial burden on such borrowers who are trying to rehabilitate themselves financially. People assume that borrowers who take out a non conforming mortgage will be buying cheaper property but the average house price is only £12,000 less than the UK average.”
