Call our mortgage brokers today to save money on stamp duty
Thursday 9 July, 2020
On 8th July Chancellor Rishi Sunak announced in his summer economic update that the Stamp Duty threshold will be immediately increased from £125,000 to £500,000 until March 31 2021. This is a temporary measure, but it’s hoped it will kick-start the housing market and boost the wider economy.
Call our Thomas Oliver mortgage broking team to benefit from the stamp duty holiday.
If you want to save money by paying less stamp duty on your house move call our qualified mortgage brokers today on 01707 872000. Our mortgage advisers can explain how you will save money from the stamp duty holiday, advise you how much you can borrow and explain how our mortgage brokers speed up your mortgage application.
Richard Rushworth, mortgage specialist in Brentwood & Hertford said: ‘Since the housing market re-opened, we have seen more people contact us about moving home. The stamp duty savings that were announced yesterday are significant, and we believe anyone who has been thinking about buying a property should act now to save money and pay less stamp duty. According to the Treasury nearly nine out of ten people who are moving home or getting on the housing ladder will now pay no stamp duty at all, which is a considerable saving. Our mortgage brokers are ready to help first time buyers, buy to let investors or any families looking to move home.’
What is stamp duty and how much does it normally cost you?
Stamp duty land tax is a lump-sum tax that everyone has to pay who buys a property or land costing more than a certain amount. The stamp duty rate that you owe varies based on the property price and property type.
How much stamp duty will you pay on purchases from 8 July 2020 to 31 March 2021?
If you purchase a residential property between 8 July 2020 to 31 March 2021, stamp duty is now only due on the amount that you pay for the property above £500,000. These rates apply if you are purchasing a first home or have owned property before.
This table shows you how much stamp duty you will now pay at certain purchase levels:
|
Property or lease premium or transfer value |
Stamp Duty Land Tax rate |
|
Up to £500,000 |
Zero |
|
The next £425,000 (the portion from £500,001 to £925,000) |
5% |
|
The next £575,000 (the portion from £925,001 to £1.5 million) |
10% |
|
The remaining amount (the portion above £1.5 million) |
12% |
Richard Rushworth, Financial Advisor and mortgage specialist in Cheshunt and Goff’s Oak continued: ‘Below I have provided details of case studies to give our readers examples of how much money they will save now stamp duty has been temporarily abolished below £500,000. Remember if you want to move home but you are not sure how much you can afford to borrow or how much stamp duty you will pay please contact our mortgage broking team on 01707 872000. Our mortgage advisors can offer mortgage advice and talk you through the stamp duty calculation so you know exactly how much stamp duty you will save following the stamp duty announcement. Our mortgage brokers offer a free initial mortgage consultation and we work with clients in central London, north London, Hertfordshire and Essex. Call us now for more information or complete our booking consultation form and your local mortgage broker will contact you.’
Stamp Duty Costs – Case Study 1
If you were moving to a property worth £500,000:
- Before 8/7/20 you would have paid no stamp duty up to £125,000.
- You would have paid 2% on the portion of the property up to £250,000.
- 5% stamp duty on the portion between £250,000 and £500,000.
- The total cost you would have paid was £15,000.
The removal of stamp duty up to £500,000 saves you £15,000.
Stamp Duty Costs – Case Study 2
If you were moving to a property worth £1,000,000:
- Before 8/7/20 you would have no stamp duty to pay up to £125,000.
- You would pay 2% on the portion of the property up to £250,000.
- 5% stamp duty on the portion between £250,000 and £500,000.
- Between £500,000 and £925,000 you would pay 5%.
- Between £925,000 and £1,000,000 you would pay 10%.
- The total cost of stamp duty you would have paid before 8/7/20 was £43,750.
By not paying stamp duty on the first £500,000 you now save £15,000.
The removal of stamp duty up to £500,000 saves you £15,000 so the new stamp duty you pay on a £1m property is £28,750.
£43,750-£15,000 = £28,750
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up the mortgage repayments
