Bank of Scotland offers help for first time buyers

With the first time buyer stamp duty exemption coming to an end this week the Bank of Scotland has today (Wednesday 21 March) announced the launch of a new product designed to ease the burden for first time buyers taking their first steps on the property ladder.

Under the terms of the new deal, Bank of Scotland will pay half of a first time buyer's stamp duty bill. This discount could reduce a first time buyer's costs by up to £1,250.

It is available exclusively to first time buyers at 5.99% fixed until 31/5/2014, when it will revert to the Homeowner Variable Rate, currently 3.99%. There is no product fee and it is available between 85% to 90% LTV.

Stamp Duty refund will be available for purchases priced between £125,000 and £250,000 and 0.5% of the property price will be paid to solicitor on completion.

This means that if a customer is buying a house for £150,000, Bank of Scotland will pay £750 towards their stamp duty bill, up to a maximum of £1,250 for those purchasing a £250,000 home. The product is available to all first time buyers, but Bank of Scotland current account customers will also receive an additional £150 on completion.

Recent research from Bank of Scotland has demonstrated that one in four first time buyers in Scotland have benefitted from the Stamp Duty exemption that has been in place since March 2010. Returning the starting threshold to £125,000 will result in nearly a quarter of Scottish first time buyers paying stamp duty. In comparison, nearly all first time buyers in Scotland, 99%, have not had to pay stamp duty over the last two years.

‘Over the last two years, the stamp duty exemption has helped around a quarter of Scottish first time buyers. Now that it's coming to an end, we're keen to do what we can to continue to support those buying their first home, and soften the blow of a stamp duty bill at what's already an expensive time,’ said Laurence Mann, head of mortgages at the Bank of Scotland.