New mortgage helps borrowers with Stamp Duty rise

Yorkshire Building Society is launching a new fixed rate mortgage to help home-movers cover the cost of the increase in Stamp Duty.

The new deal offers a competitive 3.89% fixed rate for two years with a 1% cashback on mortgages up to £250,000. An Offset version is also available at 3.99% fixed for two years, also with a 1% cashback.

From 1st January 2010, the stamp duty holiday currently enjoyed by home-movers buying properties valued between £125,000 and £175,000 will end, leaving them with a 1% tax bill, which is levied on properties bought up to the value of £250,000.

Iain Cornish, Chief Executive of Yorkshire Building Society said "In the current economic environment it is disappointing that the Chancellor hasn't extended the stamp duty holiday for home-movers buying properties up to £175,000. We understand how difficult it is for people to find extra cash to fund the cost of moving home and have therefore designed this mortgage to help with these costs.

"Our average loan size is under £175,000 and almost 90% of all the mortgages we do are under £250,000. This mortgage will therefore benefit almost all our borrowers who are looking to move home in the coming months and help with the stamp duty tax bill which could be up to £2,500."

These new mortgages are available from Thursday 17th December for house purchases, on mortgages up to £250,000, and require a 25% deposit.

For more information, visit ybs.co.uk.