Accord Mortgages has unveiled a new mortgage range offering up to £6,250 cashback to help first-time buyers offset the increased Stamp Duty Land Tax (SDLT) charges coming into force on 1 April 2025.
The initiative is designed to ease the financial burden of homebuying for those most impacted by the upcoming tax changes. The cashback will be sent directly to the borrower’s solicitor alongside the mortgage advance and will be released for use as soon as the mortgage completes.
The intermediary-only lender says its analysis shows the cashback is sufficient to cover the extra Stamp Duty on homes worth up to £500,000, preventing additional upfront costs that could delay homeownership for many.
FIRST-TIME BUYERS
Jeremy Duncombe, managing director at Accord Mortgages, said the move was in direct response to the challenges faced by prospective buyers.
He said: “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.
“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.”
And he added: “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 up front, to provide a potential solution for aspiring homeowners who need it.”
PRODUCT DETAILS
The new offering is a tiered range of five-year fixed-rate mortgages, starting at 5.19%, and available at up to 95% loan-to-value (LTV). Key features include:
- Cashback of up to £6,250, depending on property value:
- £2,500 cashback on homes valued up to £350,000
- £6,250 cashback on homes up to £500,000
- No product fee
- Free standard valuation
- Available for purchases of houses and flats, including new builds up to 90% LTV
- Open to applicants across England, Wales, Scotland and Northern Ireland
