The mutual has launched the mortgages to enable homebuyers get up to £5,000 in cashback, mitigating some of the added costs of the looming tax changes.
What is changing?
From 1st April, Stamp Duty Land Tax (SDLT) thresholds will revert to pre-September 2022 levels for homebuyers in England and Northern Ireland.
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.
Your Mortgage Awards 2024/25: winners revealed
Sponsored by Your Mortgage Awards
New deals
The five-year fixed rate mortgages are available for home purchases valued at £250,000 or more, and offer cashback incentives to help ease upfront costs. There is a:
- 75% Loan-to-Value (LTV) mortgage at 5.28% with £2,500 cashback
- 90% Loan-to-Value (LTV) mortgage at 6.15% initial interest rate with £5,000 cashback.
Nottingham Building Society’s new residential products have been launched to soften the impending tax blow, explained Matt Kingston, sales director at the mutual. “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,” he said.
“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.”
