"The upcoming stamp duty threshold change is clearly driving urgency among first-time buyers, but when buying a home, it's vital to balance speed with thoroughness"
- Felicity Holloway - Moneybox
Data, which covers Moneybox Mortgages’ customer activity during Q4 2024, has revealed a substantial increase in the number of Mortgages in Principle completed over the holiday period, with a 70% year-on-year rise on Christmas Day and a significant 76% increase on New Year's Day. In December overall, Moneybox observed an 82% year-on-year MIPs increase.
While the Christmas season usually prompts a slowdown of activity within the market, the impending stamp duty threshold change, introduced by the Government in the last Autumn Budget, is driving a significant number of homebuyers to try to progress with purchasing plans before April 1st. With the nil-rate threshold reverting back to £125,000 and to £300,000 for first-time buyers, many FTBs could see thousands of pounds worth of additional costs added to their house purchase should they buy after April - impacting their savings goals and expectations.
“The upcoming stamp duty threshold change is clearly driving urgency among first-time buyers, but when buying a home, it's vital to balance speed with thoroughness," says Felicity Holloway, Head of Mortgages at Moneybox.
She adds, "We know that many aspiring homeowners have been saving their deposit for many years, so it's no surprise that some have re-assessed their homebuying timeline and hope to expedite the process. Completing a Mortgage in Principle as early as possible is important as it positions you as a serious buyer, which can be advantageous in competitive situations.
“A Stamp Duty Calculator will also help you estimate the cost difference and assess whether proceeding now aligns with your financial readiness. While avoiding higher stamp duty is appealing, It's important to plan for the long term to ensure the property aligns with your long-term needs and goals," she concluded.
“For decades, homeownership has been seen as a cornerstone of financial stability and one of the most effective ways to build wealth, thanks to the potential for equity growth over time," explained Brian Byrnes, Head of Personal Finance at Moneybox, adding "With changes to Stamp Duty fast approaching, it’s never been more important to ensure there are robust mechanisms in place to support the next generation of first-time buyers in achieving their homeownership dreams and securing their financial future.
He said, “The Lifetime ISA is one such product that has already made a significant impact, helping hundreds of thousands get onto the property ladder far sooner than they otherwise could. Today, more than 1.5 million young people across the UK are saving with a LISA, benefiting from the 25% government bonus on their contributions. This vital support has allowed them to continue progressing toward homeownership despite persistent economic challenges and the rising cost of living.
“The LISA not only helps young people save for their first home but also fosters positive savings habits early in life—laying the foundation for long-term wealth building. To ensure its continued success, we believe future-proofing the LISA is essential. Index-linking the property price cap and introducing an emergency cash withdrawal allowance would give the next generation of first-time buyers the confidence and flexibility they need to save for their first home and beyond," he concluded.
