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Halifax lends a hand to FTBs

Halifax lends a hand to FTBs

Category: Mortgages

Updated: 21/03/2012
First Published: 21/03/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Halifax has pledged to help first time buyers with their stamp duty, with the tax set to be introduced in a few days time.

The stamp duty holiday is to come to an end on 24 March, meaning first time buyers will have to pay a 1% levy on property deals worth between £125,000 and £250,000.

But Halifax has said it will lend a hand to first time buyers by paying half of a first time buyer's stamp duty bill – potentially reducing a first time buyer's costs by up to £1250.

It 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 benefited 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.

By comparison, just one in 20 first time buyers have had to pay the levy over the last two years.

"Over the last two years, the stamp duty exemption has helped 40% of first time buyers," Stephen Noakes, mortgage director of Halifax, said.

"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."

If you've already found your ideal first home and are ready to make an offer, our downloadable First Time Buyers' Guide - 'How to buy a house: making an offer to completion' will take you through the process of buying a property and identify where you can expect delays and why.

Find the best mortgage for your first home - Compare first time buyer mortgages

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