If first time buyers are willing to pay higher rates on their interest payments, a mortgage lender is offering to pay their stamp duty.
Once a deal has been confirmed, there are several mortgage lenders who offer their customers cash back. This latest bonus is offering to pay stamp duty on all properties valued at £250,000 and up.
Many first time buyers are unable to get onto the property ladder because of stamp duty. After saving years for a deposit and to furnish the house, paying an extra lump sum is often impossible.
Stamp duty is applied to properties costing more that £125,000 with the average price being approximately £1,603.
The free stamp duty mortgage is available for first time buyers as well as to those moving home. To be eligible they will have to pay a 20 percent deposit and agree to a fixed 2.69 percent interest rate for five years.
Consumers purchasing properties in the £100,000 to £150,000 price range will get cash back of £1,250. A £250,000 property carries £2,500 stamp duty; this means that buyers purchasing a property that costs any more than this will have to pay part of the cost.
Those purchasing cheaper properties will also receive cash back after paying stamp duty costs.
Mortgages are arranged before a sale is complete, and stamp duty doesn’t have to be paid until 30 days afterwards. This means that buyers can use their cash back to pay for the stamp duty.
The majority of banks pay buyers cash back; however, if you have a low deposit, you will not receive more than £1,000.
The deal is only good for those who have no way of paying the stamp duty costs. Buyers looking for a cash back mortgage may want to try West Brom, who is offering a 2 year discount with a 2.69 percent interest rate and £1,000 cash back.