Santander UK has reported a 130% increase in mortgage applications in Q4 2024 compared to Q4 2023, with buyers rushing to secure a property purchase ahead of the Government’s stamp duty deadline.

The bank estimated that the average property purchase taking four months from mortgage offer to completion, meaning that buyers securing a mortgage offer before the end of 2024 will have “maximised their chances” of benefitting from lower stamp duty costs.

From 1 April, the stamp duty nil-rate threshold for first-time buyers will drop from £425,000 to £300,000, while for other buyer types it will fall from £250,000 to £125,000.

As a result, a first-time buyer purchasing a home priced between £300,000 and £500,000 will face a 5% stamp duty charge on an additional £125,000 of borrowing, adding thousands of pounds to the overall cost. All other buyer types will pay 2% on the amount between £125,000 and £250,000 – a potential extra cost of up to £2,500.

Head of intermediary channel – mortgages, at Santander, Graham Sellar, said: “We all know that buying a home – whether it’s our first or our forever home – comes with significant costs.

“Every penny counts when considering things like legals and removals costs, so it’s great to see so many people make the most of the holiday and secure their new home ahead of 1 April.”

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