Nationwide has advised consumers to act fast if they are hoping to secure a mortgage before the government returns stamp duty to its prior threshold of £125,000 on December 31st. In a bid to encourage activity in the stifled housing market, the government increased the stamp duty threshold to £175,000 in September 2008, and although they may extend the stamp duty holiday period, it is unlikely to be announced before the pre-budget report.
Britain’s largest building society takes an average of 39 days to complete a home loan application for house purchase. With 40 days left until the threshold is restored to its previous level, consumers wanting home loans will have to act quickly. Nationwide will not guarantee that mortgage applications will be completed within 39 days, but have promises to do its best on urgent cases.
The advice follows last week’s launch of several new deals for borrowers with deposits of less than 10 per cent. Flex current account customers can take out a two year fixed rate deal with an interest rate of 5.98 per cent and a £495 fee.
There has been a slight pick up in the housing market, restoring some degree of confidence among lenders. Meanwhile, credit card borrowing has fallen to a nine month low, and consumers are more keen to repay debts than to take out further personal loans .






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