The Government’s holiday on Stamp Duty Land Tax will come to an end in just under two months’ time, on Saturday 24th March 2012.

Wendy Evans Scott, President of the NAEA said: “With only two months remaining, first time buyers must act quickly to avoid paying Stamp Duty Land Tax on their first home purchase. If you’re currently in a chain and waiting to complete your purchase then make sure that others in the chain know about the end of the tax holiday too. Good communication with your solicitor can help move the process forward, helping you beat the 24th March cut-off.”

After the tax exemption has come to an end FTBs will face a tax of one per cent on house purchases between £125,000 and £250,000, and a three per cent tax on purchases over £250,000.

The NAEA’s recent figures show that the number of sales to FTBs edged up during November and December from 19 per cent to 21 per cent of sales per branch. However FTBs still represent a low percentage of overall property sales, and NAEA data shows the number of first time buyers getting on to the housing ladder hit a three-year low in October, at just 16 per cent of sales.

Mrs Evans Scott continued: “First time buyers are key to a healthy property market. We hope to see the number of people completing the purchase of their first home continuing to increase through February and March, as many FTBs are keen to purchase their first home before the tax exemption deadline.

“However, it is impossible to predict what impact the end of the tax exemption will have on first time buyers, particularly those on very tight budgets of under £250,000 for whom the one per cent tax could be disastrous. The Government will need to monitor sales closely and consider other action to support the fragile first time buyer market.”

Source: http://www.housefund.co.uk/2012/01/25/less-than-2-months-left-first-before-time-buyers-stamp-duty-holiday-expires/

Almost 2 million homeowners are now paying less for their mortgages than when they first bought their properties, according to new research carried out by Caroline Purdey, the market analyst for the Council of Mortgage Lenders.

The savings are due to a record low Bank of England base rate of 0.5% for the past 32 months; helping 1.8 million owners save an average of £2,600 a year by switching to their lender’s Standard Variable Rate after their fixed rate deal ended.

According to the CML, even if interest rates were to rise next year, around 85% of these borrowers would still be paying less each month than their original payment by the end of 2012, and around 58% would still be paying less than their original payment throughout 2014.

Simon Clarke, of independent mortgage brokers Jacobs Payne & Parry, commented: “The low interest rate environment has been an enormous support for homeowners in the turbulent economic climate of the past three to four years.

Many people who may have suffered financially, have kept a roof over their heads due to the fact their monthly mortgage payments have been so low that there have been relatively few repossessions, despite the magnitude of the current crisis, shows just how much of a support low Standard Variable Rates have provided. If Standard Variable Rates had been higher, far more people would have fallen into arrears and worse”

Our very own David Pollock, MD of Greene & Co. added: “Homeowners with an ounce of nous will have been overpaying on their mortgages and paying off some of their equity at a much quicker rate. The savings will stand them in good stead when the market recovers. As long as base rates remain low, this is a win-win situation”

For now, however, many borrowers are adopting a “wait and see” approach as markets expect the base rate to rise from 0.5% to around 0.9% by the end of 2012 and 2% by the end of 2014.

Source: http://www.express.co.uk/posts/view/278739/2m-save-a-fortune-on-their-mortgage