Accord Mortgages is launching a new mortgage range offering first-time buyers up to £6,250 cashback which they can use to help offset the increase in stamp duty costs.
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. The cashback will be sent to the customer’s solicitor along with the mortgage advance and released for use as soon as the mortgage completes.
The tiered range of five-year fixed-rate mortgages has rates from 5.19%, available up to 95% LTV, with no product fees and free standard valuation.
The range is available for purchases of houses and flats – including new builds up to 90% 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.”
Last week, Skipton Building Society also launched a mortgage range for borrowers who miss the April 1st stamp duty deadline. Skipton’s range sees the introduction of 0.75% and 1.50% cashback on five-year fixed rate mortgage products.
