Change to stamp duty threshold


As expected, the Chancellor has announced a change to the stamp duty threshold this morning. The level at which stamp duty comes into effect for residential property purchases has been increased to £250,000 from the current level of £125,000. First time buyers were already exempt for the up to the first £300,000 of a property price, this has now been increased to £425,000.

This increase will certainly help to reduce the lump sum that many buyers need to be able to buy a property. This may well allow buyers to put in a larger deposit, which could mean that they qualify for a lower mortgage rate by reducing the loan to value of their mortgage. However, it remains to be seen whether this causes an increase in property prices, which could actually mean that there is no benefit for buyers.

As always, your personal circumstances are the most important part of any conversation we have around mortgages, so please get in touch if you have any questions or concerns.

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments

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The Barlow Irvin Team

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