Mortgage lenders assist borrowers before stamp duty changes

Mortgage lenders are taking urgent steps to assist borrowers as a significant tax increase is set to take effect. The changes in stamp duty will happen on April 1. The threshold for paying stamp duty will go down from £250,000 to £125,000. Lenders like Accord Mortgages and Skipton Building Society have promised to complete mortgage applications by the end of March. This change means that many homebuyers will face higher costs. First-time buyers will see their tax-free threshold reduced from £425,000 to £300,000. Also, homes priced over £500,000 will lose their tax relief for first-time buyers. Skipton estimates that the new rules could add £6,250 to the cost of a first home worth £425,000. Accord warned that many people will pay stamp duty for the first time after the deadline. Both lenders expect a very busy week as buyers rush to finalize purchases. Chris Hill, from Accord, emphasized their focus on helping brokers and clients to beat the deadline. He noted their high service standards and commitment to support. Meanwhile, Skipton has reported a 54% rise in customers trying to complete their home purchases compared to last year. Charlotte Harrison, from Skipton, explained the stress this deadline creates for homebuyers. Many first-time buyers are anxious about the potential extra costs if their transactions do not complete in time. She also pointed out that the new stamp duty changes will make home affordability challenges even worse in the country.