Every Friday we take an overview of the mortgage market, hearing from industry voices and getting a round-up of the best rates courtesy of the independent experts at Moneyfactscompare.co.uk.
Slightly under the radar this week was a call for the chancellor to stop a rule change that will add thousands to stamp duty charges next March.
First time buyers currently pay stamp duty if their home costs more than £425,000 – the threshold having been temporarily lifted by the previous government to help people get on the housing ladder.
The uplift is set to end in March and Labour has previously said it would not intervene – meaning the threshold will reduce to £300,000 in spring.
Jonathan Stinton, head of mortgage relations at Coventry Building Society, said: “The chancellor should see the October budget as an opportunity to level the scales and announce changes which will stop the tax on an average priced property jumping up by £2,500 overnight.
“Short-term pain for the chancellor could result in longer term gain for the broader economy.”
We’ve written extensively in the Money blog about the unequal impact of stamp duty on buyers across the country – with an inflexible threshold meaning most buyers don’t pay it in areas where house prices are low, for example the North East, whereas in London the majority of buyers are caught.
On to the wider mortgage market, and Moneyfacts finance expert Rachel Springall says: “It has been another exciting week for fixed-rate mortgage reductions, with cuts from prominent brands such as TSB of up to 0.25%, Nationwide by up to 0.26%, Yorkshire Building Society by up to 0.20%, NatWest by up to 0.16% and HSBC of up to 0.24%.”
As we outlined yesterday, the lowest UK-wide deal on the market is now a five-year fixed from Nationwide – at 3.78%.
Brokers quoted by the Money blog yesterday said they hadn’t seen rates like that for at least two years.
Here’s how average rates looked as of Thursday morning – though it’s worth saying that many buyers will be able to find deals lower than these averages…
Away from the overall market and honing in on first-time buyers, Moneyfacts has looked at the best rates currently on offer…
The comparison site also looks at what it calls “best buys” – which considers not just the rate, but other costs and incentives. These are their top picks this week…
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