Mar 7, 2012
The launch of Nationwide’s new ‘stamp duty’ cash-back offer gives first time buyers some much needed help as the Government’s stamp duty holiday ends at the end of March, says uSwitch.com, the independent price comparison and switching service.
Michael Ossei, personal finance expert at uSwitch.com, says: “Nationwide’s offer could prove a lifeline for thousands of first time buyers who have yet to secure a mortgage or find a suitable home. With no promise as yet from the Government to extend the stamp duty holiday, Nationwide has nipped in with this offer which will lend first time buyers a much-needed helping hand.
“First time buyers are facing a squeeze – as well as the looming prospect of having to pay stamp duty after March, they are also starting to be hit by rising fees. While mortgage rates have fallen over the last 12 months, with the average fixed rate mortgage for first time buyers dropping from 4.99% a year ago to 4.40% today, mortgage fees have increased. Over the same 12 month period, the average fee has increased from £1,101 to £1,300, making it harder for first time buyers to get their foot on the housing ladder.
“Nationwide seems to understand the pain and expense of buying a home for the first time. This new deal beats other cash-back offers currently available from Santander and the Post Office, which are giving cash-back of £250 and £300 respectively. However, the Post Office deal also offers free valuation, which will also appeal to first time buyers.
“But what Nationwide has also done is to create a complimentary product range through its Flexi account that could appeal to home buyers. In particular, it has a very competitive purchase credit card for 18 months at 0% which could be very helpful for additional moving expenses.”