The Chancellor recently announced with immediate effect, that first time buyers will pay 0% stamp duty on the first £300,000 for property purchases up to £500,000 in the autumn budget.
This will come as welcome news in N.Ireland as there will be no stamp duty charged for a property up to £300,000, another bonus for first time buyers The treasury estimates the move will prevent 80% of first time buyers in the UK from paying stamp duty altogether. In order to purchase a property at £210,000 a first time buyer would previously have had to pay £1640 in stamp duty, now this can be put towards a larger deposit, or towards furniture or furnishings.
Who Counts as a First time Buyer?
You must never have bought or owned a property anywhere in the world, or inherited one. You will not receive the reduction in stamp duty if you are buying to let, even if it is your first property purchase.
Banks & Building Societies are still Lowering Mortgage Rates!
Two Mortgage Lenders have recently cut their mortgage rates to first time buyers with a 5% deposit in a bid to attract first time buyers, Yorkshire Building Society & Virgin Money. This is the kind of competition we need and like and the result is overall cheaper mortgage deals for first time buyers!
There has never been a better time to buy your first home if you have been saving up for a deposit! I wish I was a first time buyer myself sitting at the opposite side of my desk. Stamp duty reductions, free money from the government via the Help to Buy ISA, low mortgage rates all make for a very attractive environment for the first time buyer.
Even though the bank of England recently raised interest rates by 0.25% most banks and building societies low mortgage rates remain, with the exception of variable or tracker rate mortgage deals. You should think about reviewing these mortgage deals and weighing up the option of changing to a new fixed rate mortgage product, if appropriate. Make a remortgage planning appointment to discuss your options with your mortgage adviser.
Contact us for more information on how the changes will affect you or to make a free mortgage planning appointment.
Feel free to read some of our other content at The Mortgage Clinic by Helmut Elstner Managing Director.
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