Stamp Duty Offset Mortgage launched for borrowers who miss deadline

A mortgage has been launched targeting borrowers who believe they are unlikely to complete their purchase before the stamp duty holiday’s cliff-edge ending on March 31. 

This timely marketing initiative belongs to the Dudley Building Society which has launched a new two-year fixed rate product at 3.99 per cent, up to 80 per cent Loan To Value and  with £1,000 cashback, no arrangement fee and a free valuation.

“With uncertainty still looming over the stamp duty holiday deadline and a range of potential solutions currently being debated, we are pleased to announce the launch of our new stamp duty product” says commercial director Sam Ward.

"This is a great opportunity for advisers to support clients who would like to get a house purchase through amid the uncertainty surrounding the stamp duty deadline” she adds. 

“For those borrowers who may miss out, the £1,000 cashback -  included as part of the release of funds - can be used to offset stamp duty payments or anything else the borrower may choose.”

Back in July the Dudley warmly welcomed Chancellor Rishi Sunak’s stamp duty holiday announcement.Chief executive Jeremy Wood said at the time: “While there has been talk that the Chancellor’s … proposals for a temporary cut in stamp duty would only benefit a small part of the market, I don’t agree. The actual announcement will help stimulate the market, assist buyers of all types and go some way to cutting the costs of downsizing for many older homeowners who, up to now, have been put off freeing up their property for a new generation because of the stamp duty levy on purchasing a new, smaller home.”

Meanwhile a separate survey of mortgage brokers shows 75 per cent support in that industry for an extension of the stamp duty holiday. 

When Shawbrook Bank asked about the top impacts the stamp duty holiday has had, brokers reported positive outcomes, stating that they had seen increased investment in the property market (63 per cent) and resilient prices (33 per cent).

Some 54 per cent reported that they were aware of transactions that would not be completed by the deadline. 

Reduced investment in the market (41 per cent) and falling property prices (anticipated by 34 per cent) were outlined as predicted outcomes once the stamp duty holiday expires.