Spotlight: Halifax mortgage for first-time buyers
Halifax has launched a new five-year fixed-rate mortgage offer for first-time buyers, which pays 1 per cent of the purchase price. This is designed to alleviate stamp duty costs.
Stamp duty is usually charged at 1 per cent on properties between £125,000 and £250,000 (this rises to 3 per cent between £250,001 and £500,000 and 4 per cent above £500,000). However, with the housing market in the doldrums, the Government has implemented a stamp duty holiday on properties up to £175,000 until December.
Halifax's stamp duty mortgage is available on properties up to £250,000 meaning it could save first-time buyers up to £2,500.
In order to qualify you must take out a five-year fixed-rate mortgage at 6.44 per cent. Available on loans up to 90 per cent of the property's value, there is a £495 arrangement fee.
For first-time buyers who only have a 10 per cent deposit, this is the market-leading five-year fix on loans above £150,000 (if you are borrowing less than that, NatWest has a deal at 5.99 per cent which will be better value).
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies