Halifax have launched a range first time buyer mortgages where applicants can have their Stamp Duty refunded on property purchases between £125,000 and £250,000. This could mean a saving of up to £2,500 for cash strapped first timers as they try to get a foot on the property ladder.
The offer is available through a range of 'Stamp Duty Special' products which include a 60% LTV two year fixed rate of 2.54% and a 85% LTV 2 year fixed rate of 3.84%. The payment will be paid to the conveyancer on completion and the offer is available until 7th July 2013. The 'Stamp Duty Special' products are only available through Mortgage Introducers and Intermediaries.
According to research carried out by the Halifax, 40% of new purchases in 2012 were made by first time buyers and 87% of properties purchased in the final quarter of 2012 were below £250,000.
If we are going to get the UK property market moving it requires the availability of finance for first time buyers. Quite rightly lenders are reluctant to take the brakes off their lending criteria with prices still falling and, therefore, are left offering this type of incentive to attract borrowers. Halifax have definitely created a 'headline grabbing' offer with a genuine saving but, as always, borrowers need to compare this offer closely with other offers in the market to to be able to select the best overall deal for their circumstances.