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Stamp duty cut sees 15% surge in first time buyer mortgage interest

Stamp duty cut sees 15% surge in first time buyer mortgage interest

04 April 2010 / by Rachael Stiles

There has been a 15 per cent rise in first time buyer mortgage traffic since the Chancellor announced in his Budget that stamp duty would be scrapped for all first time buyers purchasing properties up to £250,000.

The rise in first time buyer mortgage traffic, recorded by in the traffic through its website, suggest that the Chancellor's decision to abolish stamp duty for first time buyers has provided a 'welcome kick' to the housing market, it said.

Furthermore, the majority of the UK population agree that first time buyers should be given more help in getting a foothold on the property ladder, with 76 per cent of users agreeing that it is 'fair' for only first time buyers to benefit from the scrapping of stamp duty.

Hannah-Mercedes Skenfield, mortgage channel manager at, said: "There has been much debate over the past week as to what impact Darling's measures will have on the housing market, and while the jury's still out on that one, it's clear that those most affected have welcomed it if numbers to our site are anything to go by. As we approach one of the busiest weekends of the year for house-hunting, the first-time buyer could well be back out after months of hibernation."

But, Ms Skenfield also added that the stamp duty cut is not enough to get the housing market going again.

"Whilst the majority of our users say the stamp duty cut is a good thing, and recognise that people need help to buy their first home, the reality is that until LTVs and corresponding loan rates improve, the situation remains largely the same," she said. "Without a large deposit, you'll find yourself on a higher rate and that's if you can get a mortgage at all. It will be interesting to see over the long-term what impact this has."

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