A major lender has offered to pay first-time buyers’ stamp duty – in an exchange for a higher rate of mortgage interest.
Currently, many mortgage lenders offer ‘ cash back’ to buyers, which is usually a small sum that is released when the mortgage deal completes. But the new Barclays’ mortgage goes further.
The cash back element is designed to pay the buyer’s stamp duty on properties that are worth up to £250,000.
7 in 10 buyers are now affected by the tax, which applies on to properties costing more than £125,000, The price of stamp duty on the average property purchase is now £1,603.
The mortgage is available for first-time buyers or home movers with a 20pc deposit, and comes at a rate of 2.69pc fixed for 5 years.
Buyers who are looking to buy a property that is worthier between £100,000 and £150,000 can expect £1,250 cash back, and buyers who are looking to purchase a property worth between £150,001 and £500,000 will revive £2,500.
If you buy a property that is worth £250,000, the stamp duty will be £2,500. Therefore if you are looking at buying a property worth more than this, the £2,500 will act as a contribution and the buyer will have to pay the remaining figure.
Buyers of cheaper properties will receive extra cash on top of their stamp duty costs. Stamp duty on a £150,000 property is £500.
Other banks also offer cash back on mortgages But currently, no banks pay more than £1,000 with this deposit size.
Bright Advice – Mortgage Broker St Neots
For more information on this latest mortgage by Barclays, get in touch with us at Bright Advice, we can offer mortgage advice and discuss the relevant steps needed to buy your first home.
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