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Bank to Pay Stamp Duty of First-Time Buyers

The Halifax has launched a new initiative to tempt first-time buyers through its doors by offering cash-back on stamp duty.  If they take out a mortgage with the bank, they will be able to reclaim the one per cent stamp duty paid on properties purchased between £125,000 and £250,000. The Halifax says that it's doing this to help ease the burden on first-time buyers trying to get on the property ladder.  The offer is available until 7th July 2013.

The mortgage director at Halifax, Craig Mckinlay said: Stamp duty can often be a cost that is overlooked, particularly for buyers who are focussed on saving an initial deposit for a house.  We're keen to do what we can to support those buying their first home, and eliminate the additional burden of a stamp duty bill at what's already an expensive time.

However, Halifax is not the first high-street bank to be feeling charitable; earlier this year, Lloyds TSB said that it was committed to lending £6.5bn to help approximately 60,000 customers make their first step on the property ladder.  In the first quarter of 2013 the high-street bank said it helped 13,000 first-time buyers get their first home.

According to the Council of Mortgage Lenders (CML), first-time buyers accounted for 40% of all home buyers in 2012.  Almost 90% of these first-time buyers purchased a house for less than £250,000 & the 1% stamp duty ceiling.  This effectively means that Halifaxs policy will apply to 90% of all first time buyers over the next few months.

Sources: thisismoney.co.uk, Lloydsbankinggroup.com (image courtesy of telegraph.co.uk)