First-time buyers urged to find a mortgage

First-time buyers needing a mortgage have until late March to complete their purchase if they want to avoid stamp duty tax charges.

With only three months of the stamp duty holiday left to go, the National Association of Estate Agents is urging potential home-owners to act quickly to avoid the stamp duty land tax.

Currently, first-time buyers do not pay stamp duty on properties priced between £125,000 and £250,000, properties worth less than £125,00 are not subject to stamp duty.

The Council of Mortgage lenders predicts that there will be a rush to buy before the end of the stamp duty holiday. Paul Smee, CML Director General, said; "It is disappointing to see the government withdrawing the stamp duty concession that currently benefits first-time buyers. While the concession may not have stimulated additional demand, it was a significant help to home-owners entering the market and its removal runs counter to the themes of the new housing strategy.”

Peter Bolton King, Chief Executive of the National Association of Estate Agents, said; "With many first time buyers trying to purchase their first home before the tax exemption deadline, our members will be working closely with those first time buyers who are able to purchase before March 2012 to guide them through a difficult and challenging market place."

For first-time buyers the challenge often isn't finding the right property but saving a sufficiently large deposit to secure a competitively priced mortgage. In the future many may have the option of buying through a new government-sponsored scheme, which will offer 95 per cent mortgages on new build properties. A launch date for the scheme is yet to be announced.