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Mortgage lenders' data has found that the Government's temporary stamp duty break last year helped more first-time buyers get on the ladder than at any point in two years.

It seems there was a rush to buy properties in the £125,000 to £175,000 bracket before the year-end stamp duty concession expired, according to figures from the Council of Mortgage Lenders.

December saw 24,900 loans to first-time buyers, the highest number since November 2007. At £2.9bn, first-time buyer loans rose 26% from November both by volume and value.

Of those, 55% of house purchase loans were on properties costing under £175,000 and therefore exempt from stamp duty, up from 51% in November. The CML says this clearly indicates a rush to complete purchases before January, when stamp duty would have added an additional 1% of the purchase price onto the cost at that level.

This proves that for first-time buyers, just 1% or a few thousand pounds, makes all the difference when it comes to being able to afford a home. And while the stamp duty break has now ended and all properties worth more than £125,000 have a 1% tax, there are still ways to save more for your first home.

Talk to a mortgage expert about what you can do to save that bit extra for your first home. It might involve some smart investing, and it might take some extra time, but a good mortgage adviser will help a first-time buyer maximise their income, their savings and their potential so as to be able to make that all-important first step onto the UK property ladder.

SOURCE: CML, 12/02/10

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