New product range aims to support first-time buyers facing higher Stamp Duty costs
Accord Mortgages, the intermediary-only lending arm of Yorkshire Building Society, has unveiled a new mortgage range aimed at assisting first-time buyers with the higher Stamp Duty costs they will face starting April 1.
The lender is offering cashback of up to £6,250, which will be sent directly to the customer’s solicitor alongside the mortgage advance and made available upon completion.
The new range consists of tiered five-year fixed rate mortgages, starting at 5.19%, available up to 95% loan-to-value (LTV). Cashback amounts will vary, starting at £2,500 for properties valued up to £350,000, with the highest tier offering £6,250 for properties worth up to £500,000. These products come with no product fee and include free standard valuations. They are available for the purchase of houses and flats, including new builds up to 90% LTV, across England, Wales, Scotland, and Northern Ireland.
The initiative is designed to help buyers manage the increased financial burden as the Stamp Duty threshold for first-time buyers in England drops from £425,000 to £300,000. This change means a first-time buyer purchasing a £425,000 property will face an additional £6,250 in Stamp Duty costs.
Accord’s move is part of a broader effort to support first-time buyers, following other recent initiatives. These include its £2,000 cashback mortgage for first- and next-time buyers and the £5k Deposit Mortgage, which allows first-time buyers to purchase properties valued up to £500,000 with a £5,000 deposit.
“First-time buyers already have enough challenges to overcome in saving up sizeable deposits and meeting the affordability challenges caused by increased interest rates and the current high cost of living,” said Jeremy Duncombe (pictured), managing director of Accord Mortgages. “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 upfront, to provide a potential solution for aspiring homeowners who need it.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
