Dunfermline drops mortgage rates weeks before return of Stamp Duty
Dunfermline Building Society has dropped its fixed rate and tracker mortgage prices by up to 0.80% in a move designed to stimulate the first time buyer market in the remaining weeks before Stamp Duty exemption expires.
The Dunfermline has dropped its two-year tracker mortgage from 3.59% to 2.79% (followed by our SVR currently 5.19% for the remaining term of the mortgage, the overall cost for comparisons is 5.1% APR*) and its two-year fixed rate mortgage from 4.29% to 3.79% (followed by our SVR currently 5.19% for the remaining term of the mortgage, the overall cost for comparisons is 5.2% APR*) for house purchases (**early repayment charges and arrangement fees are applicable) - and is urging potential buyers to act fast in order to beat the Stamp Duty Holiday deadline.
Buyers have just weeks to complete house purchases before the Government's temporary Stamp Duty exemption on properties worth £175,000 or less expires. The exemption was extended in April to 31st December 2009, but it is unlikely to be extended beyond New Year's Eve in this year’s pre-Budget report, which is due to be unveiled on 9 December.
If original thresholds return in January, those purchasing a £175,000 property can expect to pay as much as £1,750 more than they would do if a sale is complete before New Year's Eve.
Niall Fraser, Head of Branches at Dunfermline Building Society, said: “The return of stamp duty could take the wind out of the sails of the Scottish housing market. First time buyers struggling to raise the capital for a property purchase might find the extra expense too much to bear.
“We hope that dropping our rates still further might help those with very tight budgets to go the extra mile before the exemption deadline arrives.”
“Products such as these are examples of how our business has benefited from being part of the Nationwide Group. Ultimately we want our customers to benefit and these mortgages are the first of many competitive products the Dunfermline will be brining to the Scottish market."
The Dunfermline says its new range of mortgages includes no Higher Lending Charges and a 10% Overpayment Facility. Properties across the whole of Scotland, including the islands, will be considered.
The products are available now.