Under the terms of the new deal, Halifax 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 £1250, it says.
The Halifax Stamp Duty product is available exclusively to first time buyers at 5.99% fixed until 31/5/2014, when it will revert to the Halifax Homeowner Variable Rate (currently 3.99%). There is no product fee and it is available between 85% to 90% LTV.
The Stamp Duty refund available for purchases priced between £125,000 and £250,000 at 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, Halifax will pay £750 towards their stamp duty bill, up to a maximum of £1250 for those purchasing a £250,000 home. The product is available to all first time buyers, but Halifax current account customers will also receive an additional £150 on completion.
Recent research from Halifax has demonstrated that four in ten first time buyers 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 45% of first time buyers paying stamp duty. In comparison, just 5% of first time buyers have had to pay stamp duty over the last two years.
‘Over the last two years, the stamp duty exemption has helped 40% of 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 Stephen Noakes, mortgage director, Halifax.
