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Dunfermline offers Scottish 3.79% fixed rate

Monday 23rd November 2009

Dunfermline Building Society has dropped its fixed rate and tracker mortgage prices by up to 0.80 per cent in a move it said aimed to stimulate the first time buyer market in Scotland before the Stamp Duty exemption deadline expires on 31 December.

The Dunfermline has dropped its two-year tracker mortgage from 3.59 to 2.79 per cent and its two-year fixed rate mortgage from 4.29 to 3.79 per cent for house purchases.

It said buyers have just weeks to complete house purchases before the Government's temporary Stamp Duty exemption on properties worth GBP 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 GBP 175,000 property can expect to pay as much as GBP 1,750 more than they would do if a sale is complete before New Year's Eve.

Dunfermline spokesman, Niall Fraser, 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.”

“Products such as these are examples of how our business has benefited from being part of the Nationwide Group. Ultimately we want our customers to benefit and these mortgages are the first of many competitive products the Dunfermline will be bringing to the Scottish market."