BoS extends stamp duty pledge

Bank of Scotland has extended of its pledge to pay half of the stamp duty land tax for properties up to the value of £250,000 to now include all homebuyers.

The lender will pay half of any first-time buyers’ or homemovers’ stamp duty land tax for properties up to the value of £250,000, reducing a buyer’s costs by up to £1,250.

Recent research from Bank of Scotland shows that 43% of all homemovers in Scotland paid between £125,000 and £250,000 for a home in the first quarter of 2012.

Similarly one in four first time buyers in Scotland benefitted from the recent stamp duty exemption that was in place between March 2010 and March 2012. With the starting threshold now at £125,001, nearly a quarter of Scottish first-time buyers are expected to have to pay stamp duty. In comparison, nearly all first-time buyers in Scotland (99%) have not had to pay stamp duty over the last two years.

Laurence Mann, head of mortgages, Bank of Scotland said: “Buying a home is one of the most expensive purchases many will ever make, and the costs associated can place just as much of a burden on homemovers as they do for first-time buyers.

“Many initiatives have been launched over the last 12 months that are solely aimed at first-time buyers, but more needs to be done to help movers across all rungs of the ladder, which is crucial in the creation of a vibrant housing market.

“We’re keen to assist homemovers to purchase their next home, and support with their stamp duty bill does just that.”