March 4th, 2014
Halifax Bank have announced the return of a stamp duty paid incentive for first time buyers on selected interest rates, which has sparked a wave of interest for many looking to make the initial move onto the property ladder. The good news for contractors is that Halifax pride themselves on being a contractor-friendly lender, so this substantial saving will come as welcome news.
The deal has been capped solely for first time buyers looking to purchase properties up to the value of £250,000, which means that the largest saving could be as high as £2500. For any contractor purchasing under the minimum 1 per cent stamp duty threshold of £125,000, the bank has said that £250 cash back on completion will be offered. In addition, the offer is not open to buy to let mortgages, or any shared equity, New-Buy or Help to Buy based options.
The current stamp duty levels are set so that contractor purchasing a property under £125,000 will pay no levy, with any home over this price commanding a 1 per cent charge against the purchase value, to an upper limit of £250,000. After £250,001, the level rises to 3 per cent up to £500,000, then 4% between £500,001 to £1m, 5 per cent from £1m to £2m and then 7 per cent for any property above £2m.
The expectation for 2013/2014 is that £6.7bn will be raised from the tax, and Halifax believes that as many as 75 per cent of all purchasers will be required to pay the costs. In London, due to the high value of purchasing a property, Halifax have predicted as many as 98 per cent of first time buyers will pay the levy on their first purchase.
The head of sales at Halifax, Ian Wilson, noted: “We know that stamp duty can often be a cost that is overlooked, particularly by first time buyers who are focused on saving an initial deposit for a house. We helped ease the burden of stamp duty for over 14,000 first-time buyers last year and we’re keen to do what we can to once again support those buying their first home, at what’s already an expensive time.”
Simon Butler, a senior mortgage consultant from Contractor Mortgages Made Easy commented: “This incentive raised a lot of interest when Halifax launched the option last Easter, and it is sure to raise the same level this time around, if not more so. With house prices rising on an almost weekly basis, and the chances of the offered products not being widely available for a prolonged period, it will certainly pay for any contractor looking to buy for the first time to move sooner rather than later.”
Article By: Jon Sheilds, Media Executive at Contractor Mortgages Made Easy
Media Contact: Raman Kaur, Public Relations Manager
Tel: 01489 555 080