First-time buyers spend years struggling to save enough for a house deposit and often the stamp duty tax is a step too far. A new mortgage giving prospective home buyers a helping hand has just been launched by a major lender and as a result, another barrier to owning your first home has been lifted.
This new mortgage deal will be welcome news to first-time buyers who have found it difficult to get their foot on the property ladder due to soaring property prices and the high cost of stamp duty.
An exciting fee-free cashback offer, Barclays has launched the Homebuyer Cashback Mortgage which helps first-time buyers to recover the cost of stamp duty on their new purchase. Moreover, buyers will also have the flexibility to spend the cashback in any way they choose as the payment is made direct to their bank.
Borrowers will need to save a 20% deposit to qualify for the five year fixed rate deal with a rate of 2.69%. Full stamp duty cost will be covered on properties up to £250,000 and properties above this value, up to £500,000, will receive £2500 as a contribution to stamp duty costs.
Other banks have cashback offers but currently none are paying as much as Barclays. However, there are alternative deals on the market with lower cashback offers and lower rates so it’s important that all options and costs are considered.
Do your research or speak to your mortgage advisor to ensure you get the most suitable, cost effective option for you.