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Help me! I'm a FTB As the First Time Buyer Stamp Duty exemption deadline rapidly approaches, it would appear attention has again turned to help find a solution for this ever-increasing fragile market.
As you are aware, FTBs are currently exempt from paying the 1% Stamp Duty tax on a property worth up to £250,000. However this initiative, which according to recent figures has saved FTBs an estimated £319m since its launch in March 2010, is set to come to an end on 24th March.
Yet despite calls from industry experts to extend the deadline, others are warning potential FTBs not to rush into a purchase to simply seal the exemption deal. In fact, good things could indeed come to those who wait as both the Government and lenders look for ways to solve the ongoing FTB equation.
FTBs save 10% off our standard conveyancing fees with GW 1st Step and receive a little housewarming gift of £50 in M&S or B&Q vouchers upon completion
How important is the Stamp Duty exemption?
A further lifeline? The Government is not alone in its attempts to solve the FTB issue.
In the last decade, FTB activity has slumped by almost two-thirds. With such a dramatic drop, it suggests Stamp Duty exemption
Nationwide Building Society has
alone is not enough.
recently launched an ISA version of its Save to Buy account which will
The main drawback is the level of deposit required epecially with
allow first time buyers to save for a
rents towering. Following on from its FirstBuy scheme, the
deposit tax-free.
Government is poised to introduce a new proposal to try and tackle this problem.
The Save to Buy ISA guarantees to pay 2 per cent above the Bank of
The NewBuy Government scheme, which is due to launch next
England base rate and can be
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Newsletter
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month, will allow lenders to offer larger LTV mortgages on new-
opened with just £50.
build homes without taking on all the risk. This means should the homeowner fail to repay the loan, if the property falls into negative
Clients are required to save a total
equity or if it is repossessed, the lender is guaranteed to lose less
deposit of £10,000 between six
money than it would do currently as the mortgage indemnity will be
months and three years. They can
funded by developers and the taxpayer.
then apply for a Nationwide mortgage up to 95 per cent loan-to-
Got an opinion? Do you think this latest idea could give the FTB
value.
market the boost it desperately needs? Share your thoughts with us >
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16/02/2012