Comments Off on The Bank of England Reduces Interest Rates to 4.75%
The Bank of England Reduces Interest Rates to 4.75% The Bank of England has announced that interest rates are to be reduced again, this time going down to 4.75%1. This is the second reduction in interest rates in recent times, following a long period of interest rate rises, where they peaked at a 16-year high of 5.25%.2What could the Interest rates reduction announcement mean for my mortgage?If you have afixed-rate mortgage then there won’t be any immediate changes, however reductions in the Bank of England base rate may mean that lenders start to offer more attractive deals in the coming months ahead. If you have a fixed-rate mortgage period coming to an end soon, then it’s the ideal time to get in touch to discuss your options accordingly. If you have avariable-rate mortgage, have a Bank of England tracker mortgage, or are on the Standard Variable Rate (SVR), then you may start to see changes to your monthly mortgage repayments, depending upon your lender and the deal that you have. Let us see how we can help We are here to provide you with the advice and guidance you need, and help with any queries you may have. There’s an overwhelming amount of information online, and some of it can be conflicting or confusing, so this is where we are here to help you. We would recommend that you contact us to let us look at your individual circumstances and provide bespoke information to allow you to make educated decisions. It’s the ideal time to talk about your mortgage The mortgage market is constantly evolving, and it’s a great time to start looking at your mortgage, whether you’re looking at moving home or have a remortgage coming up and want to know how much it could cost you. Chances are, the rates may be considerably different to your last remortgage, however these recent changes may be starting to soften the blow and you may be pleasantly surprised by the options available. It’s our mission to provide tailored mortgage advice for your exact situation, and can look across a wide range of deals not found on the High Street, so please book an appointment to see how we can help you. Please note, your home may be repossessed if you do not keep up repayments on your mortgage. Sources: Bank of England (2024) Current Bank Rate. Available at: https://www.bankofengland.co.uk/ [Accessed 5th November 2024] Bank of England (2024) Official Bank Rate History. Available at: https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp [Accessed 5th November 2024] All the information in this article is correct as of the publish date 7th November 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Colin Warburton trading as The Finance House is an Appointed Representative of HL Partnership Limited which is authorised and regulated by the Financial Conduct Authority. Terms and conditions apply. A fee may be charged. Full details will be provided before you proceed, if you wish to use our services.
All the information in this article om the Budget Announcement is correct as of the publish date 31st October 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.
Should you Move Before Winter? Navigating the Autumn Housing Market
As the leaves turn golden and the temperature begins to drop, many UK homeowners may find themselves wondering if autumn is the right time to make a move and should you Move Before Winter. For homeowners considering selling or buying a property, the housing market can present both opportunities and challenges at this time of year. In this article, we’ll explore the pros and cons of moving before winter and what you should consider if you’re thinking of taking that step.
Why Autumn Can Be a Good Time to Move
The autumn season offers some unique advantages for home buyers and sellers:
Less Competition Spring and summer tend to be peak periods in the housing market, with more listings and heightened competition1. By autumn, there may be many buyers who were unsuccessful earlier in the year and are still looking, but with fewer homes available, which could help make your property stand out more if you’re selling.
Serious Buyers Autumn buyers may be more serious than the casual summer browsers – with the holiday season looming, this could work in your favour for a smoother transaction process as buyers seek to act fast to get settled before Winter.
Faster Processes Professionals such as estate agents, solicitors, and mortgage brokers tend to have fewer clients during autumn than in the hectic summer months. This can lead to a more efficient process, with shorter waits for appointments and quicker response times, meaning you could complete your sale or purchase faster2.
Considerations for Moving in Autumn or Move Before Winter
Despite the advantages, there are some aspects of the autumn market that are worth keeping in mind:
Weather-Related Challenges As we move deeper into autumn, the weather becomes less predictable. Rainy days can make properties look less appealing and may cause delays in tasks like surveys, moving, and viewings. However, proper planning can mitigate these issues, such as scheduling viewings on brighter days and arranging for any external work to be completed before the weather turns.
Reduced Property Availability While autumn can offer less competition, it may also mean fewer properties on the market. Some sellers prefer to wait until spring, when their gardens and outdoor spaces look their best, and when the weather is more conducive to home improvements. If you’re a buyer, this could mean a more limited selection to choose from.
Seasonal Expenses With winter around the corner, energy bills can become a factor. If you’re moving into a new home, it’s important to assess its energy efficiency and whether it’s ready for the colder months. Similarly, as a seller, ensuring your home is well insulated and energy efficient can be a strong selling point to prospective buyers.
Preparing Your Home for a Quick Sale and Move Before Winter
If you’re considering selling this autumn, a few tweaks can help make your property more appealing:
Curb Appeal: With trees shedding their leaves, your home’s exterior may look less lively. Keep gardens tidy, gutters clean, and outdoor spaces well-maintained to enhance that all-important first impression.
Lighting: Shorter days mean less natural light, so maximise indoor lighting to create a warm, inviting atmosphere during viewings. Consider swapping out dim bulbs for brighter ones and drawing attention to cozy features like fireplaces or heated flooring.
Energy Efficiency: Highlight any energy-efficient features in your home. As winter approaches, buyers will be thinking about heating costs, so showcasing double-glazing, a well-insulated loft, or a new boiler could give your home an edge.
Final Thoughts
Moving home is always a big decision, but autumn can present a unique opportunity for UK homeowners. With less competition, motivated buyers, and the potential for quicker transactions, the autumn housing market may just be the ideal time for you to make your move before the chill of winter sets in and Move Before Winter.
All the information in this article is correct as of the publish date 31st October 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.
Skip the NHS Queues: Why Private Medical Insurance Could be Your Health Lifeline
In a world where NHS waiting lists stretch endlessly, more people are turning to private healthcare1. Could Private Medical Insurance (PMI) be your fast track to better health? Let’s explore if it’s worth considering and how it could impact your peace of mind.
The Private Healthcare Boom
It’s expected that by the end of 2024, there will have been over 900,000 private healthcare admissions, driven largely by NHS backlogs and long waiting times. Admissions funded through private medical insurance (PMI) have seen an 11% increase, with self-pay options also experiencing growth, rising 32% above pre-pandemic levels.2
With NHS waiting lists longer than ever3, the appeal of skipping ahead with private insurance has never been stronger. Imagine getting that procedure you need within weeks rather than months. PMI could be your ticket to regaining control over your healthcare.
What’s in It for You?
Private Medical Insurance doesn’t just offer quicker care, it’s designed to help put you in the driver’s seat. You can choose your specialist, your hospital, and you’re likely to benefit from faster access to diagnostics, surgeries, and treatments. Plus, many policies now offer mental health coverage, acknowledging that a healthy mind is just as important as a healthy body4.
Here’s what most policies cover4:
Fast-tracked consultations with experts in their field
Surgeries and hospital stays in private facilities
Outpatient services such as tests, scans, and X-rays
Physiotherapy for when you need to get back on your feet
24/7 GP access—often via virtual consultations, giving you round-the-clock support
However, PMI doesn’t cover everything. Emergencies, chronic conditions like diabetes, and maternity care are typically excluded. These are important limitations to be aware of when deciding if PMI is right for you4.
Not Ready for PMI? Here Are Other Options
If you’re still unsure about PMI, you’ve got alternatives. Critical illness insurance offers a lump sum if you’re diagnosed with a major condition5, while income protection provides a safety net if you can’t work due to illness or injury6. These policies can provide financial stability in times of health crises, so don’t discount them.
Is Private Medical Insurance the Right Choice for You?
Let’s be real: the decision to invest in PMI depends on your personal priorities. If the idea of waiting months for a specialist through the NHS makes you anxious, PMI could be one answer for helping give some peace of mind. For self-employed individuals, it’s even more critical. A health issue could mean serious financial setbacks, and PMI might just save the day by helping you to get back to work faster.
Alternatively, you could create a dedicated savings pot for medical expenses. But remember, medical bills can rack up quickly, and you might find that your savings don’t cover everything when the time comes.
Your Health, Your Choice
In the end, the decision to take out PMI is entirely personal. It’s about how much you value immediate access to healthcare, and how much you’re willing to invest in securing that peace of mind.
Take the Next Step Towards Smarter Healthcare Choices
We can help you find the right insurance product to suit your needs and budget. Whether you’re leaning towards PMI or exploring other forms of protection, we’ll guide you through the process, to help you make an informed decision that fits your exact needs.
All the information in this article is correct as of the publish date 31st October 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.
Comments Off on Are Tracker Mortgages Becoming Popular?
Tracker mortgages have gained significant traction in the UK housing market throughout 2024, with recent data showing a 67% surge in uptake compared to 2021.1
The appeal of Tracker Mortgages stems from their flexible nature, offering interest rates that follow the Bank of England’s base rate, which has become especially attractive amidst ongoing economic uncertainty and fluctuating interest rates.
What is a tracker mortgage, and how does it work?
A tracker mortgage is a type of variable rate mortgage which tracks a pre-arranged independently set interest rate – usually linked to the Bank of England base rate – for a set period. The term could be between 1 and 5 years, or an open-ended lifetime tracker mortgage. Like all variable rates, they go up as well as down, depending on movements in the Bank of England base interest rate.2
For example, if the base rate is 5% and your tracker mortgage is set at ‘base rate plus 1%’, then your interest would be 6%. If the base rate drops to 4%, your interest would decrease to 5%.
What is Driving the Shift?
In 2021, only 118,818 tracker mortgages were issued in the UK, but by the first quarter of 2024, this figure had skyrocketed to 198,044. According to research, the growing appeal of tracker mortgages is tied to the shifting interest rate environment1. As the Bank of England’s monetary policy evolves, borrowers have increasingly looked for mortgage products that provide them with the flexibility to benefit from potential interest rate cuts faster than those on fixed-rate mortgages.
Two-Year Tracker Mortgages Lead the Surge
Among tracker mortgages, two-year products have seen the most significant growth, with an 87% rise, jumping from over 86,000 in 2021 to more than 160,000 two-year tracker mortgages in 2024. This suggests that borrowers are particularly keen on short-term deals that offer immediate savings, allowing them to benefit from a potential rate reduction over the next couple of years3.
Borrowers are likely anticipating that interest rates will stabilise or decrease in the near future, making short-term tracker deals an attractive option. However, it’s worth noting that this rise comes at the expense of longer-term products. For instance, three-year and five-year tracker mortgages have seen declines in uptake, with three-year deals dropping by 66%, and five-year deals by 26%, as borrowers are wary of locking into longer terms given the current uncertainty around interest rates over the longer-term period.3
What are the main risks of a tracker mortgage?
While tracker mortgages can offer financial advantages, they come with risks. Given their flexible nature, it’s important to consider the emotional toll of fluctuating monthly payments.
For borrowers who are prone to financial stress, the unpredictability of a tracker mortgage can lead to anxiety, especially if the Bank of England unexpectedly raises rates.
Additionally, while some borrowers may enjoy lower payments when rates fall, others could see their monthly mortgage costs increase if rates rise. It’s crucial to carefully weigh the short-term savings against the long-term risks and ensure that you’d be comfortable with the possibility of higher repayments should the economy change – especially bearing in mind the turbulence seen in recent years.
Is a Tracker Mortgage Right for You?
The decision to opt for a tracker mortgage depends on your own financial goals, lifestyle, tolerance of risk and your outlook on the interest rate environment ahead.
For those who believe that interest rates are likely to fall or remain stable, a tracker mortgage may possibly offer more financial flexibility than a fixed-rate mortgage. However, it’s important to remain vigilant, keep an eye on interest rate movements and be prepared for the potential of increased payments with relatively short notice.
If this is something of interest to you, then please do get in touch to discuss further. We’ll listen to your exact circumstances and make bespoke recommendations to fit your precise needs, to allow you to make an educated decision on your mortgage.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
All the information in this article is correct as of the publish date 31st October 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.
AI Voice Scams: Could You Be Next? Over a Quarter of Brits Targeted
Fraudsters are taking advantage of cutting-edge AI technology with Voice Scams and it’s time we all start paying attention. According to shocking new research from Starling Bank, over a quarter (28%) of UK adults have been targeted by AI voice cloning scams in the past year alone. The worst part? Nearly half (46%) of Brits don’t even know these scams exist, leaving them wide open to being tricked.
The terrifying thing about AI Voice Scams cloning is that criminals only need three seconds of audio to mimic someone’s voice1. That’s right, just a few seconds of your voice – maybe from a video on social media – and fraudsters can sound exactly like you or your loved ones. Once they’ve cloned your voice, they’ll call or leave a message for your family, sounding desperate, asking for money urgently.
Amazingly, nearly 1 in 10 people said they’d send money even if the call seemed a bit off. That’s millions of potential victims of Voice Scams! Yet only 30% of us know what to look for when it comes to these scams1.
So what can you do? One technique could be to establish a secret ‘Safe Phrase’ with your close family and friends, something that only you and they know – this way, if you ever get a strange call from someone claiming to be a loved one, just ask for the phrase. If they can’t say it, it’s probably a scam.
Starling has even enlisted the help of actor James Nesbitt, whose voice was cloned to show just how real the threat is. “Hearing my own voice cloned was a real eye-opener,” he admits. “I’ll definitely be setting up a Safe Phrase with my family.”1
In a world where fraud is on the rise, and financial fraud cases are skyrocketing, it’s crucial to stay alert.
All the information in this article is correct as of the publish date 26th September 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.
Comments Off on Are You Ready for the Energy Price Cap Hike?
Energy Price Cap Hike
The energy price cap rises from October 1st, UK homeowners are facing the harsh reality of increased energy bills – and it’s those living in the least energy-efficient homes who will feel the biggest pinch. According to new data from Rightmove1, households in properties with the lowest energy performance ratings (EPC F-G) could see their annual bills spike by £558 under the new price cap.
For homes with a more typical EPC rating of D, the increase will still be a significant £225 per year on average from the previous energy cap1. But it’s the least efficient homes, already struggling with higher energy costs, that will bear the brunt of these latest rises.
With the cost-of-living crisis already squeezing budgets, this rise in energy bills could leave many homeowners scrambling for ways to cut costs.
Energy Efficiency Becomes a Top Priority
Improving energy efficiency isn’t just about saving money on bills – it’s becoming a key selling point for buyers and renters. As Tim Bannister from Rightmove explains, “Energy efficiency is fast becoming a top consideration for buyers and renters who want to future-proof themselves against rising costs.”
With energy prices unlikely to drop anytime soon2, homeowners are now looking at ways to make their properties more efficient, from upgrading insulation to installing energy-efficient windows and boilers, and according to Rightmove’s survey, 70% of homeowners and 76% of renters said they would change how and when they use energy if it meant having cheaper bills1.
These measures could be a worthwhile investment, especially as energy bills continue to climb.
Time to Act
If your home has a lower energy rating, it might be time to consider making improvements. Even small upgrades can help reduce bills and make a property more attractive to buyers..
With October 1st just around the corner, now is the time to prepare. Whether you’re staying put or looking to move, energy efficiency is quickly becoming a must-have feature for anyone looking to avoid crippling energy bills.
All the information in this article is correct as of the publish date 26th September 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.
With the summer holidays now behind us, the Autumn home-selling season has kicked off in full force – and this year, it’s busier than ever! After a quieter property market in 2023, where many prospective buyers and sellers held back due to soaring mortgage rates and stubbornly high inflation, it seems 2024 is seeing a rebound1.
According to the latest figures from Rightmove, there’s been a 15% increase in enquiries to estate agents compared to the same period last year. Even more impressively, sales agreed are up by 27%, a clear sign that home-movers are now feeling more confident about making a move1.
Why the Sudden Surge?
Several factors are driving this renewed market activity. Mortgage rates, which caused many to delay their moves in 2023, have been trending downward. Inflation is finally heading closer to its 2% target2, and for the first time in four years, we saw a Base Rate cut on August 1st.3 This has boosted buyer confidence, giving many the green light to purchase the homes they may have been eyeing up last year.
Prices Are on the Rise
In line with the busier market, asking prices are climbing. The average asking price of a home in Great Britain is now £370,759, a jump of £3,000 since August – that’s a 0.8% increase, double the usual seasonal rise.1
But as always, location matters, and prices vary greatly depending on where you live.
Here’s a breakdown of the changes, according to data from Rightmove1:
First-time buyers: average price now £227,570, up 0.2% from last month.
Second-steppers: average price now £343,052, up 0.7%.
Top of the ladder: average price now £670,753, up 0.8%.
What Could This Mean for Sellers?
While it’s a busy market, it’s not necessarily a seller’s dream scenario. Buyers are being more selective, taking an average of 60 days to find the right property – three days longer than last year. That means sellers need to be realistic with their pricing from the start1.
Looking Ahead
The Government’s Autumn Statement on October 30th will likely influence the market further, with the government’s fiscal plans potentially affecting property buyers and sellers. For now, though, there’s a window of opportunity – but it might not stay open for long.
So, if you’re thinking of selling or buying in this property market, now could be the time to act, and we’re here to help give bespoke mortgage & protection advice to help you on the journey.
All the information in this article is correct as of the publish date 26th September 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.
First-Time Buyers Stamp Duty: Only Two Months Left to Save up to £15,000
First-Time Buyers Stamp Duty, time is running out for first-time buyers looking to save big on their property purchase. According to new research from Zoopla1, buyers have just two months left to take advantage of the current stamp duty relief before rates rise, potentially saving as much as £15,000.
From 1st April 2025, Stamp Duty Land Tax (SDLT) rates will revert to their previous levels, leading to thousands of pounds in extra costs for first-time buyers in certain areas.2
Biggest Impact in Southern England
The upcoming changes are expected to hit buyers hardest in London, the South East, and the East of England. In some of the most expensive London boroughs, such as Camden, Islington, and Hammersmith & Fulham, buyers could see their stamp duty bills increase by up to £15,000.1 Currently, first-time buyers pay no stamp duty on properties up to £425,000, but this threshold will fall to £300,000 after April 2025. Furthermore, homes priced between £500,000 and £625,000 will no longer be eligible for first-time buyer relief at all.1
Rising Costs on the Horizon
According to the research1, the typical first-time buyer in London, the average stamp duty bill will rise to £5,600 after April 2025. Meanwhile, those in the South East and East of England will face average bills of £1,390 and £1,040, respectively. Buyers in these regions could possibly make significant savings by acting now and securing their purchase before the new rates come into effect.
Lower Mortgage Rates Provide Added Advantage
With mortgage rates having improved slightly in recent months3, first-time buyers in Southern England stand to benefit even further onFirst-Time Buyers Stamp Duty by purchasing before the end of the reduced Stamp Duty rates. Average monthly mortgage repayments have dropped from £1,076 to £979 for a typical first-time buyer home, meaning that buyers in London could save the equivalent of 3.5 months of mortgage payments simply by avoiding the looming stamp duty changes1.
Time is Running Out
First-time buyers need to move quickly. According to Zoopla1, the average time to complete a property transaction is 25 weeks, meaning that offers made after the end of November could risk missing the deadline. Those looking to buy in 2025 should prepare for the increased stamp duty costs.
The North and Midlands Remain Unaffected
While Southern England will bear the brunt of these changes, the vast majority of first-time buyers in Northern England and the Midlands will remain unaffected. Around 95% of buyers in these regions are seeking homes priced below £300,000, meaning they will still qualify for stamp duty relief after April1.
Find Out How Much Stamp Duty You Could Pay
Use our calculator below to find out how much Stamp Duty you could pay on a property purchase:
Location of Property England Northern Ireland Scotland Wales
Do you currently own a property? No, I’m a first-time buyer Yes, I currently own a property No, but I have owned a property in the past
How will you use the property? Live in property Buy-to-let Holiday home
Property Value Calculate
What Should You Do?
If you or someone you know is looking to buy their first home, it’s important to act now to be in with a chance of making a saving where possible – whilst there’s no guarantee that the home purchase will beat the deadline, by starting the buying journey sooner rather than later can help mitigate paying additional First-Time Buyers Stamp Duty. For more information go to Brighton Mortgage Broker – The Finance House
All the information in this article is correct as of the publish date 26th September 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.
Comments Off on How Much Stamp Duty Will You Really Pay?
Stamp Duty Uncovered: How Much Stamp Duty Will You Really Pay? Find Out with Our Easy-to-Use Calculator
Stamp Duty is a term that can send shivers down the spine of homebuyers across the UK, and for good reason. It’s a tax that can add a hefty sum to the already considerable costs of purchasing a property. But what exactly is Stamp Duty, and how much will it set you back? Here’s everything you need to know about How Much Stamp Duty Will You Really Pay.
What is Stamp Duty?
Stamp Duty, officially known as Stamp Duty Land Tax (SDLT), is a tax imposed by the government on the purchase of property or land in England and Northern Ireland. It applies to both freehold and leasehold properties, whether you’re buying outright or with a mortgage. The tax is calculated as a percentage of the purchase price, with different rates applying depending on the value of the property1.
How Much Does Stamp Duty Cost?
The amount of Stamp Duty you’ll need to pay depends on several factors, including the price of the property and whether you’re a first-time buyer. The government has set up different bands, meaning that different portions of the property price are taxed at different rates.
Here’s a breakdown of the current Stamp Duty rates1:
£0 – £250,000: 0% (No tax is payable)
£250,001 – £925,000: 5%
£925,001 – £1.5 million: 10%
Over £1.5 million: 12%
For example, if you’re buying a house worth £400,000, the first £250,000 is tax-free. The next £150,000 is taxed at 5%, meaning you’ll pay £7,500 in Stamp Duty.
But that’s not all. If you’re buying a second home or a buy-to-let property, you’ll face an additional 3% on top of the standard rates for each band2. This can significantly increase the overall cost of purchasing a property.
First-Time Buyers
The government offers a bit of relief for first-time buyers, who don’t have to pay Stamp Duty on properties worth up to £425,000. If the property is worth between £425,001 and £625,000, a reduced rate of 5% is applied on the portion above £425,000. However, if the property exceeds £625,000, standard rates apply with no relief3.
Change is on the Horizon
Stamp Duty is set to change in March 2025, as the Temporary Stamp Duty Holiday put in place by the former Government is set to expire and revert to the previous property value thresholds3. This means that the threshold of £250,000 for the average buyer will reduce to £125,000, and for first-time buyers, the threshold reduced from £425,000 down to £300,000.3
Furthermore, with the new Government in place, there is speculation that there may be further changes to these figures potentially following the next Budget announcement in October4.
Either way, for those seeking to buy properties under the current Stamp Duty value thresholds, the action is to move swiftly to minimise the chances of having to pay Stamp Duty on property purchases before the existing deadline of 31st March 2025.
Stamp Duty Calculator
To help you figure out exactly how much Stamp Duty How Much Stamp Duty Will You Really Pay, try using our stamp duty calculator.
Simply input the purchase price of your property, and the calculator will do the hard work for you, giving you a clear picture of what you’ll owe.
Stamp Duty Calculator
Location of Property England Northern Ireland Scotland Wales
Do you currently own a property? No, I’m a first-time buyer Yes, I currently own a property No, but I have owned a property in the past
How will you use the property? Live in property Buy-to-let Holiday home
Property Value Calculate
Is There Any Way to Avoid Stamp Duty?
Unfortunately, there’s no legal way to avoid paying Stamp Duty if you’re buying a property in England or Northern Ireland. However, if you’re purchasing a property that’s worth less than the threshold, or if you’re eligible for first-time buyer relief, you may be able to reduce or eliminate the tax altogether5.
There are a few other exemptions to be aware of. For instance, if you’re transferring property ownership due to divorce or dissolution of a civil partnership, Stamp Duty may not apply. Similarly, if the property is left to you in a will, you won’t need to pay Stamp Duty2.
Conclusion
Stamp Duty can be a significant cost, and it is good to know How Much Stamp Duty Will You Really Pay. It’s something that every potential homebuyer needs to factor into their budget. While the tax can seem daunting, understanding the rates and knowing how to calculate what you owe can help you plan ahead and avoid any nasty surprises, especially with possible change on the horizon. So before you sign on the dotted line, make sure you’ve taken Stamp Duty into account – it could potentially save you thousands.
All the information in this article is correct as of the publish date 29th August 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.
