Accord Mortgages has launched a mortgage range designed to help cover the cost of buying a first home, in particular the increased Stamp Duty Land Tax (SDLT) first-time buyers face from 1st April.
Available from today, Thursday 27th March, the new range offers first-time buyers up to £6,250 cashback which they can use to help offset the increase in Stamp Duty costs and will be sent to the customer’s solicitor along with the mortgage advance and released for use as soon as the mortgage completes.
It includes a tiered range of 5-year fixed-rate mortgages, starting at 5.19%, available up to 95% loan-to value (LTV), for first-time buyers, with free standard valuation.
Cashback ranges from £2,500 on properties valued up to £350,000, with the highest tier paying £6,250 for properties valued up to £500,000
It comes with zero product fee and is available for purchases of houses and flats – including new builds up to 90% loan-to-value (LTV) – in England, Wales, Scotland and Northern Ireland.
Jeremy Duncombe, managing director of Accord Mortgages, said: “First-time buyers already have enough challenges to overcome in saving up sizable deposits and meeting the affordability challenges caused by increased interest rates and the current high cost of living.
“We fear that finding thousands more to cover the additional tax burden resulting from the Stamp Duty changes announced in the Government’s Autumn Budget, will be a step too far for many.
“That’s why we’ve decided to launch this innovative new product, with differing amounts of cashback that will be sent to the solicitor on completion to ensure the borrower doesn’t need to find further money up front, to provide a potential solution for aspiring homeowners who need it.”
