New five-year fixes offer cashback for buyers missing Stamp Duty deadline
Skipton Building Society will introduce a new cashback mortgage range on Monday, March 24, offering up to 1.50% cashback on five-year fixed rate deals across a variety of loan-to-value tiers.
The new products will be available at 60%, 75%, 85%, 90%, and 95% loan-to-value (LTV) and will include cashback of 0.75% or 1.50%, paid to the borrower’s bank account 15 days after completion.
The move comes as the lender aims to support homebuyers — especially first-time buyers — facing higher costs from upcoming changes to the Stamp Duty threshold.
As part of its effort to assist buyers racing to complete before the April 1 deadline, the mutual has committed to completing all submitted applications where conveyancers have provided certificates of title by March 25.
Skipton Group continues to call on the government to reconsider the planned changes to Stamp Duty thresholds. The current nil rate threshold of £425,000 for first-time buyers is set to be reduced, which Skipton argues will add thousands of pounds to purchasing costs for those entering the market.
According to new research from the group’s Home Affordability Index, the share of local authority areas in England where the average first-time buyer home will be subject to Stamp Duty is expected to rise sharply — from 8.4% to 32% — when the threshold reverts in April. The change could result in an additional cost of £6,250 for buyers purchasing a £425,000 home.
The research also highlights ongoing affordability issues, revealing that nearly 90% of would-be first-time buyers across Great Britain are priced out of homeownership based on their current financial situation.
Skipton said it has seen a 54% increase in completions compared to March last year, with half of those being first-time buyers attempting to finalise their transactions before the tax change takes effect.
“Our teams will work round the clock, doing extra hours to help as many first-time buyers complete before the Stamp Duty changes,” said Charlotte Harrison (pictured), chief executive of home financing at Skipton Building Society. “We’re doing all we can to help but appreciate how worrying it is for some to know that if their chain does not complete in time, they face additional extra costs.
“Our new mortgage launch is another example of our innovative product range designed to help more people get on the property ladder and supporting the next generation of homeowners.”
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