» Read the full story

At the end of the year stamp duty will go back to applying to all properties above £125,000 not the current temporary £175,000 – but many borrowers are trying to get hold of a mortgage before the break runs out.

In fact, homeowners looking to take advantage of stamp duty holiday and buy homes under £175,000 increased nearly 10% in last three months, according to moneysupermarket.com.

The website thinks the end of the stamp duty holiday will have a severe impact to the market, with most of these likely to be first-time buyers. Once the regular tax returns, all those buying a home worth more than £125,000 will have to pay a 1% stamp duty tax. While it doesn't sound like a lot, for a first-time buyer that could be a few thousand pounds less for their deposit.

Hannah-Mercedes Skenfield, mortgages channel manager at moneysupermarket.com, said: "Thousands of house buyers are trying to take advantage of the stamp duty holiday before it is due to end. It is encouraging to see an increase in homeowners looking for this band of property.

"Most buyers looking at this end of the housing market are likely to be first-time purchasers; when the stamp duty benchmark is pushed back to £125,000, and factoring in the huge cash deposit required by the banks, stepping on to the housing ladder is going to be an impossible leap for many. The average house price in all regions is over £125,000, so this benchmark is exceedingly low."

If you want to get in before the break ends, talk to a mortgage professional immediately. It will be tough, but there is still time to take advantage of the stamp duty break. So talk to someone who can find you a great deal, fast – a professional mortgage adviser.

SOURCE: Moneysupermarket.com, 25/11/09

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.