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Barclays launches stamp duty cashback mortgages

Home-House-Monopoly-Money-Property-700x450.jpgBarclays is launching a fixed-rate mortgage that lets first-time buyers and homemovers recover some or all of the stamp duty on their home.

The Barclays Homebuyer Cashback mortgage will give up to £2,500 cashback on mortgages greater than £150,000 and up to £500,000.

Cashback of £1,250 is available on mortgages between £100,000 – £150,000 to match the maximum stamp duty on properties of up to £187,000.

The loan is available as a five-year fixed rate at 2.69 per cent and 80 per cent LTV, for the minimum £150,000 loan option with £2,500 cashback.

The mortgage is available at the same terms for the £100,000 to £150,000 loan option with £1,250 cashback.

The full stamp duty cost will be covered on properties with a value of up to £250,000.

Properties with a value of more than £250,000 will get £2,500 as a contribution to stamp duty costs up to £500,000.  

Barclays Mortgages director Craig Calder says: ““This fee-free cashback purchase-only mortgage completely removes one of the major barriers faced by many first time buyers and homemovers, as well as there being no product or valuation fees to pay.

 “With a cashback of up to £2,500, it will help first time buyers move forward and buy their own home much sooner – with the flexibility to spend the cashback to either recover their stamp duty cost or however they wish.”

Trinity Financial product director Aaron Strutt says: “Even though more of the lenders are offering cashback incentives, it is unusual for one of them to provide enough money to pay for the stamp duty on a £250,000 purchase.

“The lenders are coming up with new incentives to make it easier to get on the property ladder and tempt more borrowers into action.”

Barclays Mortgages will also be making changes to the rest of its residential mortgage range and increasing the loan size ranges up to £10m, many with a fee free option.

Barclays has brought in a purchase-only 1.79 per cent two-year fixed mortgage at 60 per cent LTV for overall loans between £5,000 and £500,000.

The lender has also introduced a 1.28 per cent two-year fixed rate at 60 per cent LTV with a £1,499 fee. The mortgage is available for loans between £500,000 and £2m.

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