Halifax to entice FTBs with Stamp Duty offer

Halifax has launched a product specifically designed to help first-time buyers take their 'first steps' on the housing ladder, offering borrowers an incentive that is designed to pay their Stamp Duty Land Tax.

Effective from 29 April, the product allows borrowers to receive 1% of the purchase price of the property on completion, which would be available on its five-year fixed rate mortgage up to 90% loan-to-value (LTV) for properties up to £250,000.

This product is designed for first-time buyers who buy properties valued between £175,000 and £250,000. A cheque will be issued directly to the conveyancer following completion.

Fahim Antoniades, director of Quantum Money, was doubtful that the product would prove an attractive option for borrowers. He explained: "I think that people who can raise a 10% deposit are likely to be able to find that extra 1%, so I do not really understand why this product would appeal."

He concluded: "This deal is a headline grabber and will get people's attention, but there are other products out there at 90% LTV that will be more attractive, because the rate being offered here is so high."

Ray Boulger, senior technical manager at John Charcol, agreed that the high rate would put borrowers off.