First-Time Buyers Need Support
Below is a MRR and PLR article in category Finance -> subcategory Real Estate.
First-Time Buyers Need Support
Overview
A recent study by a major mortgage lender reveals that changes in the stamp duty threshold have failed to alleviate the financial burden on homebuyers.
Key Findings
The Portman Building Society discovered that following the April 2005 increase in the stamp duty exemption threshold, British homeowners still paid nearly £60 million more in stamp duty than before the change. Although the government raised the threshold to £120,000, it made little difference given that average property prices hover near £200,000, with first-time buyers paying around £145,000.
Matthew Wyles, Group Development Director at Portman Building Society, remarked, "Stamp duty is essentially a form of advance capital gains tax, imposed long before buyers can benefit from homeownership." He advocates for exempting first-time buyers from this tax.
Supportive Measures
In response, Newcastle Building Society has introduced new mortgage options tailored for graduates. Steve Urwin, their Marketing Manager, acknowledges the challenges first-time buyers face and explains their introduction of a 100% mortgage and guarantor mortgage. This allows parents and grandparents to assist by sharing initial mortgage costs, with the first-time buyer assuming more responsibility as their income grows.
The new mortgage deals offer a 100% loan-to-value on properties up to £200,000. The guarantor mortgage is available to first-time buyers aged 21 to 35 with an annual salary of at least £15,000.
For more information on properties suitable for first-time buyers, visit [MoveTo](http://www.moveto.co.uk).
You can find the original non-AI version of this article here: First-Time Buyers Need Support.
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