From 1st April 2025, major changes to Stamp Duty Land Tax (SDLT) take effect, impacting the majority of homeowners in the UK. If you’re planning to buy or move home, it’s crucial to understand how these changes could impact your costs.
How Much More Will You Pay?
Around 49% of homeowner purchases over £250,000 will pay an extra £2,500 in stamp duty from 1st April. Meanwhile, those purchasing a property between £125,000 – £250,000 will now pay up to 2% extra tax, up to a maximum of £2,500.
Impact on First-Time Buyers Some First-time buyers will also face higher costs, where properties in the £300,000 – £625,000 range could see stamp duty charges of up to £15,000. However, first-time buyers purchasing a property under £300,000 remain exempt from stamp duty.
What Should You Do?
With stamp duty costs rising, it’s important to plan ahead. If you or someone you know is considering buying a home, assess how the additional tax will impact budget and savings.
For those unable to buy before the changes take effect, focusing on saving strategies will be key. Cutting back on unnecessary spending, reviewing household budgets, and setting aside additional funds each month can help offset the higher costs.
Consider options like higher-interest savings accounts, ISAs, or investments to grow your deposit more effi- ciently. If you are planning to move, factoring in the increased stamp duty into your selling price or mortgage calculations will help you stay financially prepared.
To discuss your options and how these changes could affect your mortgage, get in touch today
If it isn’t all-encompassing, it simply isn’t Compass
Securing a mortgage is only part of the story. What’s just as important is the experience you have along the way.
Related news
Autumn Budget Reaction: How Does it Impact You?
The Chancellor has now delivered the Autumn Budget, and while many of the headline measures were widely anticipated, you might understandably be asking “What does all this mean for my mortgage?” Below is a breakdown of the key themes and what they could mean for your finances over the coming months.
Preparing for the 2025 Autumn Budget
The Autumn Budget is always a key moment for homeowners, investors and savers. This year’s announcement on 26th November is expected to be no different. The Chancellor will set out the government’s plans for tax, borrowing and spending for the year ahead.
How Spending Choices Affect Your Mortgage Options
When it comes to managing your finances, your credit score plays a key role – especially if you’re thinking about remortgaging. Many homeowners don’t realise that everyday spending and borrowing decisions can influence the way lenders view your financial health.