A new mortgage product for first time buyers, offered by Barclays Bank, includes payment of stamp duty on up to £250,000 of the property’s value.
Under the deal, Barclays will cover all the stamp duty costs for a first time buyer paying a purchase price of up to £250,000 (currently £2,500) but they won't improve the offer on a property costing more. As it's virtually impossible to find any London property for sale at £250k, buyers will still need a lump sum to cover the balance.
If you are struggling to pay a big stamp duty bill, £2,500 upfront may seem better than nothing at all, but as the old saying goes: "All that glitters is not gold". The downside is that Barclays' new deal means you'll pay a much higher overall mortgage rate, at a fixed rate of 2.69pc for five years. But don't panic: check out the available mortgages for first time buyers here and you may find something that works for you. When you’re ready to begin your search, call us at London Residential: we can find you the perfect property to suit your budget.
A major lender has offered to pay first-time buyers' stamp duty - in exchange for a higher rate of mortgage interest.