Skipton Building Society launches lifeline mortgage deals for buyers hit by £6,250 stamp duty hike

First-time buyers have less than two weeks to complete house purchases before major stamp duty changes come into force on April 1.

Alarming research from Skipton Group's Home Affordability Index reveals the proportion of local authority areas in England where the average first-time buyer home falls in scope of stamp duty will almost quadruple overnight from 8.4 per cent to 32 per cent.

The upcoming changes mean buyers could face an extra £6,250 on a £425,000 home.

Skipton’s research reveals growing concerns about the situation, with nearly 90 per cent of would-be first-time buyers in Great Britain being unable afford to get on the property ladder based on their current finances.

The Building Society is doing everything it can to help homebuyers beat the upcoming stamp duty deadline.

So far this month, the number of people trying to complete their home purchase is up 54 per cent compared to March last year. Half of those are first-time buyers rushing to avoid paying extra tax.

To support them, Skipton is guaranteeing it will complete any case where the buyer’s solicitor sends the certificate of title by March 25.

The Society's teams are working round the clock, doing extra hours to help as many first-time buyers complete before the changes take effect.

To support those who don't manage to complete their house purchase before the stamp duty deadline, Skipton will launch a new cashback product range on Monday (March 24).

The five-year fixed products will be available at 60 per cent, 75 per cent, 85 per cent, 90 per cent and 95 per cent LTV ratios.

These new mortgage products will provide up to 1.50 per cent cashback, offering a helping hand for homebuyers affected by the stamp duty changes.

The cashback will be paid directly into customers' bank accounts 15 days following completion.

The new range specifically introduces 0.75 per cent and 1.50 per cent cashback options on these 5-year fixed rate mortgage products.

Charlotte Harrison, CEO of Home Financing at Skipton Building Society, said: "Our teams will work round the clock, doing extra hours to help as many first-time buyers complete before the stamp duty changes.

"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."

She added: "Our Home Affordability Index research shows that the country has a chronic lack of home affordability and is about to get even worse.

"The upcoming stamp duty reforms will further hurt first-time buyers and Skipton Group has been actively urging the government to maintain the current nil rate stamp duty threshold of £425,000 for people buying their first home.

"Today's 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."

Skipton's efforts come at a critical time for the housing market, with affordability challenges reaching crisis levels for first-time buyers.

The building society continues to urge the Government to reconsider the stamp duty threshold for first-time buyers.

With the deadline fast approaching, Skipton's new cashback products offer some relief to those unable to complete purchases before April 1.

The Society remains committed to finding solutions that address the acute affordability challenges persisting in today's property market.