Mortgage rates trimmed to encourage buyers

A lender has announced it is cutting mortgage rates in a bid to entice more customers before the stamp duty threshold reverts back to £125,000.

Dunfermline Building Society has revealed it is trimming its two-year tracker deal from 3.59 per cent to 2.79 per cent, while the two-year fixed deal has been cut from 4.29 per cent to 3.79 per cent.

The society’s head of branches, Niall Fraser, warned that the change in stamp duty could have a detrimental effect on the recovery of the property market in Scotland.

He continued: “We hope that dropping our rates still further might help those with very tight budgets to go the extra mile before the exemption deadline arrives.”

The stamp duty holiday has helped fewer buyers than was expected by the government, according to property portal Zoopla.co.uk.

Its figures stated that 115,447 purchases have been made of homes between £125,000 and £175,000 since the change was made in September last year, less than a quarter of the predicted total.

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