What the Stamp Duty Cut Means for Your Contractor Mortgage

10th July 2020 / in Contractor Mortgages & Protection Blog / by Gordon Hunter, MD

For England and Northern Ireland, the government has scrapped stamp duty on house purchases of up to £500,000, potentially saving homebuyers thousands of pounds.

Previously stamp duty kicked in at £125,000 (or £300,000 for first time buyers) meaning you can make significant savings if looking at purchasing or moving home this year. These new rates will remain available until 31st March 2021

Stamp Duty: New Rates until 31/03/2021

Property price Percentage
£0-£500,000 0%
£500,001-£925,000 5%
£925,001-£1.5m 10%
Above £1.5m 12%

Examples below of savings that you could make

First time buyers
– Now £0 Stamp duty up to £500k
– Previously it was only £0 up to £300k
– Buying at £500k would now incur £0 stamp duty, where it was £10k previously

Home movers, who are selling their current residential
– Now £0 stamp duty up to £500k
– Previously it was only £0 up to £125k
– Buying at £500k would now incur £0 stamp duty, where it was £15k previously

Home movers retaining existing residential or Buy to Let investors
– Now £0 stamp duty up to £500k, but the 3% additional supplement still applied
– Previously it was £0 up to £125k (3% supplement on the full price though)
– Buying at £500k would now incur £15k stamp duty, where it was £30k previously

This only applies in England and Northern Ireland it should be noted.

Scotland’s equivalent to stamp duty, the Land and Buildings Transaction Tax, is rising from £145,000 to £250,000 until the 31st March 2021.

The Welsh government has announced that its Land Transaction Tax threshold will increase from £180,000 to £250,000 until 31st March 2021.

Super Contractors are award-winning contractor mortgage and protection specialist. Specialising in helping contractors, freelancers, self-employed and beyond secure mortgages across the UK.

For more information on how it affects your mortgage, speak to our expert mortgage advisers today – freephone 0800 211 8700 or fill in our online enquiry form.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Lifetime Finance Group Limited trading as Super Contractors is an appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority.

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