At the beginning of April there will be major changes to Stamp Duty that will significantly increase costs for many people who are purchasing a house.
From April 1, the Stamp Duty threshold will drop, meaning the level home buyers will have to pay the property tax will be lower and could mean at least £2,000 in additional payments.
Speaking to Belfast Live, Kris Gaw of Mortgage IQ Bangor said home buyers are being encouraged to move quickly in order to get deals done by March 31 in order to save themselves some money. He has provided some advice to buyers about the upcoming changes and what they can expect to pay come April.
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If you’re planning to buy a home, here’s what you need to know:
The tax-free threshold for home movers drops from £250,000 to £125,000 First-time buyers will only get tax relief up to £300,000 (down from £425,000) The maximum property price eligible for first-time buyer relief drops from £625,000 to £500,000Home Mover | £250,000 tax-free | £125,000 tax-free | £2,500 more |
First-Time Buyer | £425,000 tax-free | £300,000 tax-free | £6,250 more |
First-Time Buyer (Max Purchase) | Up to £625,000 eligible | Up to £500,000 eligible | £6,250 more |
Kris said: "The changes to Stamp Duty coming in April will have a huge impact on home buyers and will see some pay thousands of pounds more than they would if they purchased in March. For example, if you’re buying a detached home in Northern Ireland, the average price is £386,187, from April 1, first-time buyers will pay an extra £4,309 in SDLT, while home movers will pay £2,500 more.
"According to Zoopla, the rate of buyers paying SDLT will rise from 49% to 83% and the rate of first time buyers will double from 21% to 42%."
Kris shared some top tips that he has for home buyers in the coming weeks as he encouraged people act fast in order to avoid additional costs;
Act Fast – If you’re house hunting, try to complete before March 31, 2025, to avoid the extra tax! Budget for SDLT – “I always make sure my clients are aware of the higher SDLT rates if they’re completing after April 1. Planning ahead can save you stress later.” Get Your Mortgage Sorted Early – “The sooner we talk, the sooner I can help you understand what you can afford—including SDLT costs—so you can house hunt with confidence.” Look Into First-Time Buyer Schemes – Government support like Lifetime ISAs or shared ownership could help ease the cost. Use an SDLT Calculator – Online tools can give you an estimate of how much you’ll need to pay. Speak to a Mortgage Expert – At Mortgage IQ, we’ll help you navigate these changes and find the best mortgage for you.If you would like to speak with Kris or another Mortgage IQ advisor please visit WeAreIQ.com or email [email protected]
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