What does the Autumn budget 2017 mean for First time buyers?

Stamp duty abolished on all properties up to £300,000 for first-time buyers. So what does this mean for those looking to buy their first home? The abolishment of stamp duty takes effect immediately, knocking up to £5,000 off the cost of a house purchase, depending on property price; making it easier for first time buyers to get on the property ladder.

Definition of a first-time buyer, do I qualify?

A first- time buyer is an individual who has never owned a leasehold or freehold property and are purchasing the property as their only or main residence. If you are purchasing your first home with a partner or friend, in a joint purchase, then all purchasers must be first-time buyers to qualify for the benefits.

New stamp duty rules state that if you have sold up and are currently renting, you do not qualify.

How is stamp duty changing and what will I save?

Before:

Previous to the stamp duty change, first-time buyers paid 2% stamp duty on purchases over £125,000. So if a property cost £250,000, the purchaser would pay a tax bill of £2,500. (2% of £125,000)

Now:

First-time buyers will pay nothing on purchases up to £300,000. According to HM Treasury, the change is set to benefit 95% of first-time buyers and could save them an average of £1,660 (Moneyfacts).  

A further £10 billion has been committed to the Help to Buy scheme to support those saving for a house deposit.

If you are considering taking your first steps onto the property ladder, now could be the perfect time. Our first time buyer tools and guides will help answer your questions and keep you on track. Or if you would prefer to speak to one of our expert mortgage advisers, call 0345 606 4488. Lines Open Monday – Friday 8am – 6pm and Saturday 9am – 3pm (Local rate charge but calls from mobiles may cost more)

YOUR MORTGAGE WILL BE SECURED ON YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.