Budget Stamp Duty Cut Tempts First Time Buyers

The recent Budget announcement by the Chancellor to abolish stamp duty on properties below £250,000 is tempting first time buyers out for Easter.

According to moneysupermarket.com, in the week immediately following the Budget, they saw a 15 per cent jump in the number of prospective first-time buyers visiting its mortgage comparison channel.

This increase is also coupled with an improving trend in mortgage availability for first time buyers, after the lows of last year.  This year there has been a 17 per cent increase in the number of 90 per cent mortgages available and the number of 80 per cent loans available is up by a third.  The average rate for first time buyers is 4.79 per cent.

Hannah-Mercedes Skenfield, mortgage channel manager at moneysupermarket.com, said “As we approach one of the busiest weekends of the year for house-hunting, the first-time buyer could well be back out after months of hibernation.”

It’s not all positive though as she adds “Whilst the majority of our users say the stamp duty cut is a good thing, and recognise that people need help to buy their first home, the reality is that until LTVs and corresponding loan rates improve, the situation remains largely the same. Without a large deposit, you’ll find yourself on a higher rate and that’s if you can get a mortgage at all. It will be interesting to see over the long-term what impact this has.”