You are here: Home - News -

Barclays launches Stamp Duty cashback mortgage for first-time buyers

by:
  • 14/02/2017
  • 0
Barclays launches Stamp Duty cashback mortgage for first-time buyers
Barclays has introduced a cashback mortgage for fledgling buyers targeted to cover stamp duty fees for properties worth up to £500,000.

The product, the Homebuyer Cashback Mortgage, will give first-time buyers up to £2,500 which is intended to help customers recover the cost of Stamp Duty.

Borrowers purchasing their first home with a value between £100,000 to £150,000 will receive £1,250, while those buying a property valued between £150,000 and £500,000 will receive £2,500.

Craig Calder, director of Barclays Mortgages, said: “This fee-free cashback purchase-only mortgage completely removes one of the major barriers faced by many first-time buyers and homemovers, as well as there being no product or valuation fees to pay.

“With a cashback of up to £2,500, it will help first time buyers move forward and buy their own home much sooner – with the flexibility to spend the cashback to either recover their Stamp Duty cost or however they wish.”

The rate available on the new product is at 2.69% for a five-year fix at 80% loan-to-value (LTV).

Aaron Strutt, product director at Trinity Financial, said it was “unusual” for a lender to provide enough money to cover Stamp Duty fees on a £250,000 purchase.

“If you do not need the cashback to put towards the deposit or stamp duty, then it is probably worth opting for a cheaper deal as the rate is slightly higher. Lenders are coming up with new incentives to make it easier to get on the property ladder and tempt more borrowers into action. There are 12 lenders offering sub-2% five-year fixes, although you will need a larger deposit to access them,” he added.

“Five-year deals are very popular at the moment because the rates are so cheap and borrowers like the thought of longer term payment security. Another bank offered a similar cashback scheme last year and it was incredibly popular. This sort of product allows younger borrowers to be less reliant on the Bank of Mum and Dad.”

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
petrol pump
Inflation hits two-and-a-half-year high of 1.8%

UK inflation rose to 1.8% in January, its highest level in two and a half years, according to figures from...

Close