Nottingham Building Society, the mortgages and savings mutual, has launched two new residential cashback products to help homebuyers – especially first-time buyers – get up to £5,000 in cashback.
The new five-year fixed rate products have launched as a direct result of the impending stamp duty changes taking effect from 1st April 2025 that will add thousands on to the overall price of completing a home in the UK for future homebuyers.
Available for home purchases valued at £250,000 or more, the new products offer competitive fixed rates and cashback incentives to help ease upfront costs:
- 75% Loan-to-Value (LTV) – 5.28% initial interest rate with £2,500 cashback
- 90% Loan-to-Value (LTV) – 6.15% initial interest rate with £5,000 cashback
From 1st April 2025, Stamp Duty Land Tax (SDLT) thresholds will revert to pre-September 2022 levels for homebuyers in England and Northern Ireland, particularly for first-time buyers and second home purchasers.
First-time buyers will be among the hardest hit, as the nil-rate threshold will drop from £425,000 to £300,000, meaning those purchasing above the revised amount – which is below the average price to buy a UK home, according to recent data – will now pay 5% tax on properties priced between £300,000 and £500,000.
The general SDLT nil-rate threshold will also fall from £250,000 to £125,000, introducing a 2% tax on the £125,001–£250,000 band. Additional property buyers will face a new 7% tax rate on properties between £125,001 and £250,000, up from 5% currently.
As a result, first-time buyers could pay over £5,000 more in stamp duty, and home movers up to £2,500 more, depending on their property value.
These changes will make homeownership more expensive, increasing upfront costs for first-time buyers and home movers. Nottingham Building Society’s new residential products have been launched to soften the impending blow.
Matt Kingston, Sales Director at Nottingham Building Society, said: “The upcoming Stamp Duty changes are set to significantly increase the upfront costs of buying a home, making homeownership even more challenging – particularly for first-time buyers who are already facing affordability pressures.
“With the nil-rate threshold for first-time buyers dropping from £425,000 to £300,000, many will now face thousands in additional costs just to get on the property ladder. At the same time, home movers and second-home buyers will also see higher tax burdens, further complicating an already difficult market.
“We believe these changes should not deter people from achieving their homeownership ambitions. Our new cashback mortgage products are designed to provide practical financial support at a time when it’s needed most.
“By offering up to £5,000 in cashback, we aim to help ease the immediate financial impact of these changes and support buyers in securing a home in an increasingly expensive market.”
