Dunfermline drops mortgage rates to move market

Buyers have just weeks to complete house purchases before the Government’s temporary Stamp Duty exemption on properties worth £175,000 or less expires. The exemption was extended in April to 31 December 2009, but it is unlikely to be extended beyond New Year’s Eve in this year’s pre-Budget report, which is due to be unveiled on 9 December.

If original thresholds return in January, those purchasing a £175,000 property can expect to pay as much as £1750 more than they would do if a sale is complete before New Year’s Eve.

Niall Fraser, Head of Branches at Dunfermline Building Society, said: "The return of stamp duty could take the wind out of the sails of the Scottish housing market. First-time buyers struggling to raise the capital for a property purchase might find the extra expense too much to bear.

"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."

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