Act quickly to secure a mortgage and benefit from the higher stamp duty threshold

The Government raised the stamp duty threshold from £125,000 to £175,000 in 2008 but if you want to take advantage of this, get your mortgage quickly as it is due to return to £125,000 on December 31.

It takes some time to get a mortgage approved and with only around 40 working days until the stamp duty is due to return to £125,000, it means you really have to act quickly if you want to take advantage.

If you are buying a house worth up to £175,000 and at least exchange contracts before the end of the year, you can avoid paying stamp duty.

Whilst accessing mortgage finance is still difficult, there are more deals coming onto the market.

Last week, Leeds Building Society introduced a new 5 year fixed rate mortgae with up to 85% LTV.

Nationwide also introduced a new range of mortgage deals for borrowers with deposts of less than 10%.

Those with higher deposit can still secure the best mortgage deals – including an interest rate of 1.99% with a 40% deposit at HSBC.

Whether the Chancellor Alasdair Darling will reintroduce the stamp duty for those buying homes worth between £125k and £175k in the New Year isn’t clear.

If you have made up your mind about buying a house though, what is certain, if you sort out your mortgage and at least exchange contracts before the 31 December, you will avoid paying stamp duty.