Are Mortgages Cheaper Through A Broker?
Mortgage NewsRead article
28 Mar
Stamp Duty Savings Cancelled Out By Rising House Prices
14 Oct
Mortgage News
Last month, the UK government announced new Stamp Duty cuts, which are set to save the average house buyer approximately £2,500. Chancellor Kwasi Kwarteng announced in his mini-budget that Stamp Duty thresholds would be permanently doubled to £250,000 from £125,000. Other thresholds were also raised, including the nil-Stamp Duty threshold for first-time buyers to be exempt when buying their first home (for properties up to £425,000).
The Managing Director of HBB Solutions, Chris Hodginkson, commented that those in a position to buy a house would welcome this news, given the average £2,500 savings. However, as it stands, the average house price in England sits at £311,583. Rising house prices in today’s market will essentially eliminate any savings benefits within the first month, as buyers will be expected to pay a greater upfront price.
Your One-Stop Guide To All Things Stamp Duty
It may feel more difficult than ever to buy a home in the current economic climate and with the cost of living increasing.
However, our independent Mortgage Advisors are on-hand to help make the process of buying a house as simple and stress-free as possible by advising you on appropriate products available for your situation. To find out more, book a free consultation with our team today.
In the meantime, we’ve put together a quick guide for all of the frequently asked questions we get asked by our clients relating to Stamp Duty:
- What Is Stamp Duty?
- Do First-Time Buyers Have To Pay Stamp Duty?
- How Much Stamp Duty Will I Have To Pay?
Q. What Is Stamp Duty?
Stamp Duty (Stamp Duty Land Tax) is a tax that buyers in England and Northern Ireland pay after they have purchased a property. Once completion has taken place, buyers will have 14 days to file a return to HMRC and pay any tax due, which is often completed on your behalf by your solicitor or estate agent. Stamp Duty applies to both leasehold and freehold properties and must be paid on time to avoid any additional charges or interest.
Q. Do First-Time Buyers Pay Stamp Duty?
If you’re a first-time buyer, you’re in luck! First-time buyers are exempt from having to pay Stamp Duty on their property, provided the value of the home is below £425,000 (previously, the threshold was up to £300,000).
Different rates will apply depending on if you are buying a property for buy-to-let or whether you’re buying your second home.
Q. How Much Stamp Duty Will I Have To Pay?
We often get asked by our clients how much stamp duty they’ll have to pay, which can vary depending on the property’s value and whether you will be buying for the first time.
If you’re interested in making a purchase but you’re unsure how much Stamp Duty you’ll need to pay, our expert Mortgage Advisors can help advise you on the potential costs that will arise. Get in touch today to book a free consultation to discuss your current circumstances.
