New deals ease upfront costs ahead of Stamp Duty changes
Nottingham Building Society has introduced two new five-year fixed rate mortgage products, offering up to £5,000 in cashback to homebuyers.
The new products are available for properties priced at £250,000 or more. A 75% loan-to-value (LTV) mortgage has an initial interest rate of 5.28% and includes £2,500 cashback, while a 90% LTV mortgage comes with a 6.15% initial interest rate and £5,000 cashback.
The move comes as impending Stamp Duty changes, set to take effect on April 1, are expected to raise purchase costs for buyers in England and Northern Ireland. Stamp Duty Land Tax (SDLT) thresholds will revert to pre-September 2022 levels. The nil-rate threshold for first-time buyers will decrease from £425,000 to £300,000, meaning buyers purchasing above this amount will pay 5% tax on properties priced between £300,000 and £500,000.
The standard SDLT nil-rate threshold will also drop from £250,000 to £125,000, introducing a 2% tax on properties between £125,001 and £250,000. Additional property buyers will face a higher 7% tax rate on purchases in this price band, up from the current 5%.
These changes are expected to increase homeownership costs. First-time buyers could pay over £5,000 more in Stamp Duty, while home movers may face up to £2,500 in additional costs.
Data from property comparison site reallymoving shows that first-time buyers accounted for 64% of home mover activity in December 2024 and 63% in January 2025, as these buyers sought to complete transactions before the tax increases.
“The upcoming Stamp Duty changes are set to significantly increase the upfront costs of buying a home, making homeownership even more challenging – particularly for first-time buyers who are already facing affordability pressures,” said Matt Kingston (pictured), sales director at Nottingham Building Society.
“We believe these changes should not deter people from achieving their homeownership ambitions. Our new cashback mortgage products are designed to provide practical financial support at a time when it’s needed most.”
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