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    • Bank of England cuts the base rate to almost zero
    • Buying, selling and moving home during the pandemic
    • Tightening credit conditions in the mortgage market
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    • The property market reopens for business
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    • Your guide to mortgage valuations
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    • Introduction
    • 1st Time Buyers Mortgage Guide
    • 1st Time Buyer & Help to Buy
    • What is a Buy to Let Mortgage?
    • Buy to Let Mortgage Advice
    • Flexible Mortgages
    • Interest Only
    • Remortgaging
    • Repayment
  • Protection
    • Introduction
    • Do I need Income Protection Insurance?
    • Income Protection Advice
    • Why do you need Life or Critical Illness Insurance?
    • Critical Illness & Serious Illness Cover
    • ASU / Redundancy
  • Life Insurance
    • Introduction
    • Term Insurance Policies
    • Endowment Policies
    • Family Income Benefit
    • Guaranteed 50 Plus Life Cover
    • Whole of Life
  • Conveyancing & Solicitors
  • Surveys and Valuations
  • General Insurance
    • Introduction
    • Buildings & Contents Insurance
    • Compare & Buy Online Now!
    • Landlord Cover
    • Rent Guarantee
    • Home Buyers' Protection
    • Home Emergency Cover
    • Commercial Insurance
    • Professional Indemnity
    • Public & Employers' Liability Insurance
  • Will Writing & Estate Planning
  • Other Loans & Services
  • Articles
    • Bank of England Rate Rise
    • Fee Free Mortgage Advice
    • Negotiating the best price for your new home
    • Freehold versus Leasehold
    • Why you need advice on mortgages
    • Ten terms first time buyers will want to know
    • Buying process and dealing with estate agents
    • Selling property and marketing options
    • Help to Buy or not Help to Buy: that is the question
    • New home or pre-loved?
    • Interested in interest only?
    • Are lifetime mortgages on the rise?
    • General Data Protection Regulation (GDPR)
    • Solicitors and conveyancers
    • Joint Borrower Sole Proprietor Mortgages
    • The 3% stamp duty
    • First-time buyer stamp duty relief
    • Offset mortgages: how they work and who they work for
    • Self-employed mortgages versus mortgages for those employed by others
    • Mortgages: debts versus deposits
    • House prices increase swiftest in North West compared to rest of UK
    • Transfer of Equity
    • 10 Pitfall Mortgages
    • Remortgages versus product transfers
    • Limited Company Buy-to-Let Mortgages
    • Retirement Interest Only (RIO) mortgages and the new residential option between normal Interest Only and Equity Release
    • 2019 and our rate of interest predictions
    • Brexit and the property market 2019
    • Potential benefits of using a broker
    • The mortgage market: lenders and their existing clients
    • Mortgages and Relationships
    • Robo Advice: is it right for you?
    • Cheaper rates versus cheaper fees
    • Why online mortgage comparisons can be so vastly different
    • Affordability Calculators
    • Cashback Mortgages
    • Government Rent a Room Scheme
    • Government Marriage Allowance
    • The property market continues to move; and the North West is looking good
    • England letting fees banned and how this may affect you
    • Top credit file definitions
    • Understanding your credit rating
    • BTL, LTB, HMO & holiday let terms explained
    • Offset mortgages: term and payment reduction options
    • November 2019 Bank of England base rate
    • The general election candidates for the Chorley Constituency
    • 2019 year-end mortgage lending market
    • 2019 year-end house prices
    • Can we expect sub 1% mortgagee deals?
    • How is Brexit likely to affect 2020 mortgages and house prices?
    • Interest rates in the UK, Europe and beyond
    • How the Great British Pound is faring against Euro and US Dollar
    • Help to Debt (HTD) – the importance of good advice when it comes to making borrowing decisions
    • Bank of England January 2020 base rate meeting
    • Lender Dual pricing: what it means to the mortgage seeker
    • Direct rates offered through lender portals can be costly?
    • Bank of England cuts the base rate to almost zero
    • Buying, selling and moving home during the pandemic
    • Tightening credit conditions in the mortgage market
    • One in seven takes mortgage payment holiday
    • The property market reopens for business
    • Lenders reintroduce 90% mortgage deals
    • Turbulent times for lenders
    • Easing out of lockdown
    • First-time buyer demand surges but options are limited
    • Stamp duty scrapped on homes under 500k
    • Competition watchdog investigates developers over mis-selling claims
    • UK economy may need further stimulus says the Bank of England
    • Your guide to mortgage valuations
    • Your guide to mortgage surveys
    • A quick guide to interest rates
    • A quick guide to inflation
    • The state of the housing market at the end Of 2020
    • What to look for in the 2021 property market
    • Price caps revealed for Help To Buy Scheme
    • Are 95% mortgages coming back?
  • Enquiry Forms
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  • Home
  • First-time buyer stamp duty relief

First-time buyer stamp duty relief

There are many costs involved in purchasing your own home and paying the government’s stamp duty land tax, usually abbreviated to ‘stamp duty’, has long been one of the highest; even taking the process out of reach for some.

It was with welcome relief then that the chancellor announced a suspension of this requirement for many first-time buyers in his autumn budget last November. There is some history with this as it was also removed by a previous chancellor in the late noughties to help stimulate a struggling housing market in the wake of the credit crunch on a temporary basis – as it is, officially, this time around.

If more houses are sold, this helps the construction industry and others reliant on homebuying too, so it’s not just the buyers themselves who stand to benefit from this.

So, how does the first-time buyer stamp duty relief affect property purchasers currently (at the time of writing)?

So, here’s the rub. As it stands, if you have never owned property or land in the UK or abroad – this must apply to both of you if it is a joint mortgage and both applicants are on the mortgage deed – you do not have to pay stamp duty if you are buying a property and its value is £300,000 or less.

There has long been no stamp duty for properties purchased for £125,000 or less for all anyway. However, since 3rd December 2014, the stamp duty on properties valued between £125,000 and £250,000 has been 2%; with no stamp duty due for the first £125,000, the 2% is levied only on any sum between that £125,000 and £250,000. This means that if you are buying a £250,000 property, your stamp duty would work out at £2,500.

For purchasers buying properties that cost over £250,000 (and up to £925,000), the stamp duty rises to 5%. This means that someone buying a £300,000 property, for example, would be liable to pay £5,000 stamp duty.

For the moment, if you fit that first-time buyer demographic, your stamp duty in that scenario would be zero. For purchases over £300,000, you would still pay the stamp duty on the amount above it however, at least you would save that first £5,000.

As with the previous incentive almost a decade ago, this is a temporary relief at present. In effect, the government could announce its withdrawal tomorrow, though this does seem unlikely with current economic uncertainty cooling the housing market in some areas. It may encourage you to take that leap if you stand to benefit however, as always, you’ll need bespoke advice before deciding if it’s the right time for you to step on the housing ladder.

For the record, stamp duty is payable via your solicitor or legal representative, traditionally close to the end, or at the end, of the process. It often forms part of the solicitor’s final invoice. Unfortunately, if you have owned property or land before, then you would currently not benefit from this form of tax relief. If you are unable to remember if you have owned before, you or your solicitor can – and the solicitor will – check with the land registry among other sources.

 

Company address: Euxton Mortgage Market, Hearle House, 5 East Terrace Business Park, Euxton Lane, Chorley, Lancashire, PR7 6TB
T: 01257208946 F: 01257208947 Email: info@euxtonmortgagemarket.co.uk

Euxton Mortgage Market are independent mortgage advisers covering Euxton and the surrounding areas, including: Leyland, Bamber Bridge, Farrington, Lostock Hall, Longton, Adlington, Charnock Richard, Croston and Rivington.

Adrian John Wood, trading as Euxton Mortgage Market, is an appointed representative of HL Partnership Limited, which is authorised and regulated by the Financial Conduct Authority.

*Some of these products are not regulated by the Financial Conduct Authority.

Adrian John Wood is entered on the Financial Services Register (www.fca.org.uk/register) under reference 682490.

H L Partnership Limited is entered on the Financial Services Register (www.fca.org.uk/register) under reference 303397.

The information contained in this website is subject to UK regulatory regime and is therefore intended for consumers based in the UK.

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