Abbey warns stamp duty deadline is approaching
Properties valued between £125,000 and £175,000 have been exempt from stamp duty since September 2008 but this will end on December 31.
Abbey has estimated from the last two quarters sales that as many as 35,000 buyers could be affected and face a collective tax bill of £53.7m, with the highest volumes of buyers at risk in the South East and South West.
Abbey warn with typical house purchases taking at least 3 months, the effective deadline is actually September 30.
Abbey will be releasing two new mortgages in September targeting first time buyers hoping to avoid the 1 per cent stamp duty. The products being launched are a 3.99 per cent 75 per cent LTV and a 5.75 per cent 85 per cent LTV, both fixed with a £495 fee.
Abbey Mortgages director Nici Audhlam-Gardiner says: ‘First time buyers have been hit hard by the costs of climbing onto the ladder and for these people this is a golden opportunity to make a big saving.”