With the April 1 stamp duty changes fast approaching, Skipton Building Society has launched a new mortgage offer to support first-time buyers. As many rush to complete their purchases before the deadline, GBNews reports that the new tax rules could add up to £6,250 in additional costs for buyers of properties valued at £425,000.
Rising Concerns as Stamp Duty Changes Approach
Research from Skipton’s Home Affordability Index indicates that the proportion of areas in England where the average first-time buyer home falls under the scope of stamp duty will increase significantly, from 8.4% to 32%.
This shift is expected to impact many first-time buyers, with nearly 90% of them unable to afford to enter the property market based on their current finances.
To help those who are racing against time, Skipton Building Society is offering a new range of mortgage products. These include five-year fixed-rate mortgages with cashback options, designed to provide financial relief for homebuyers who cannot complete their transactions before the deadline.
The cashback, up to 1.50%, will be deposited directly into customers’ bank accounts 15 days after completion.
Support for First-Time Buyers
Skipton has committed to helping buyers complete their home purchases on time. The Society guarantees to complete any cases where the buyer’s solicitor submits the certificate of title by March 25.
The mortgage provider has also seen a 54% increase in the number of people attempting to finalize their purchases this month compared to last year. Notably, half of those buyers are first-time buyers trying to avoid the additional stamp duty costs.
In addition to its new mortgage offerings, Skipton continues to advocate for policy changes, urging the government to maintain the current stamp duty threshold for first-time buyers.
The Society remains dedicated to addressing the growing affordability crisis, emphasizing that without further intervention, the housing market’s challenges will only worsen.
With the deadline looming, Skipton is taking proactive steps to alleviate the pressure on homebuyers, providing both immediate financial relief and long-term assistance for those seeking to secure their first homes.
