The Autumn Budget brought welcome relief for anyone looking to get a foothold in the UK’s burgeoning property market. As the Chancellor abolished Stamp Duty on homes up to the value of £300,000 for first time buyers, this has made thousands of properties across Britain accessible to those at the bottom of the housing ladder, especially in Manchester.

It’s estimated that more than 10,000 properties will now be exempt from Stamp Duty in Greater Manchester, saving first time buyers up to £5000 in taxation. This is likely to have a significant impact on the region’s housing market, further strengthening Manchester’s position as the capital of the Northern Powerhouse.

Making Manchester property accessible for all

Manchester has risen to the fore as one of the most aspirational places to buy in the UK in recent years. The development of HS2, a surge in demand and favourable rental yields all make it an attractive place to invest – both as a home buyer and first time landlord.

As house prices in Manchester continue to experience impressive growth (6.6% from November 2016 to November 2017, according to Hometrack), changes to Stamp Duty tax will prevent thousands of expat first time buyers from being priced out of the city’s housing market.

Despite price increases in Manchester, Zoopla claims the average value of a house still sits well within the new remit for first time buyers at around £180,000. Therefore, as developers continue to churn out affordable housing in and around the city centre, it’s likely to be much easier to get on the property ladder moving forward. Mortgages for First Time Buyers

How does this affect first time buyer mortgages?

When purchasing a property in the UK, it’s not uncommon to factor Stamp Duty taxation into the loan application. However, this can decrease the likelihood of securing finance as a first time buyer, particularly as an expat or overseas investor, who face much more stringent criteria.

Incorporating Stamp Duty into a mortgage application will often push the loan-to-value (LTV) ratio above the maximum limit, which is usually 60% with lenders. Plus, the interest levied on the extra borrowing in the long term can present a real burden to successful applicants; an extra £5000 to pay for Stamp Duty would result in £8500 interest at a rate of 5% over 25 years.


Are you looking for a first time buyer expat mortgage in the UK? Our experts can help you explore finance options from a range of trusted lenders, as well as introducing you to investment opportunities in Manchester and the surrounding areas. To get started, complete our online form or call +44 (0) 161 871 1216 today.

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