Halifax has begun to offer first time buyers a helping hand – the payment of their stamp duty costs. Halifax, which is currently an element of the partially taxpayer owned Lloyds Banking Group, has claimed it will pay up to £2,500.00 to cover the cost of the tax on property purchased between the prices of £125,000 and £250,000.
The bank has extended a similar proposal to buyers about a year ago after the Government in essence stopped the “holiday” on stamp duty for the first-time buyers. The duty begins at zero percent for property up to £125,000 and then one per cent is added for property up to £250,000, three per cent for property over £500,000, and four per cent for property up to a £1million. It is five per cent for property over £2million and seven per cent for anything above that.
In 2009, the Labour government suspended stamp duty for those buying a home under £250,000 if they had never previously owned UK property, but this scheme to help first time buyer ran out last spring. Ed Balls, the current Shadow Chancellor has called for the scheme to be re-instated.
Halifax currently offers stamp duty cash-back for first-time buyer on its full mortgage range. Currently it offers a rate of about 3.24% with almost no fee on a two-year fixed rate for those who have a deposit of more than 20 per cent, but for those who can only put 15 per cent, the rate drops to 3.79 per cent. About one per cent of the currently property price will be paid to a solicitor on the completion. The offer is on now.
A mortgage broker from London & Country said: “On the face of it some of the rates may not look as sparkling as the lowest in the market until you take account of the package as a whole.” And went on to explain how removing the £2,500 would be a clear benefit, but first time buyer should also continue to look at the overall package, to ensure it provides “the best overall value.”
