Adding stamp duty to the mortgage

[CrispyFB]

I never thought this was possible at all, but I've read today in a few places that it is. We're looking at 3% stamp duty.

However due to the size of our deposit, we'll be applying for a 95% mortgage, probably HTB stage 2, so I'm guessing we won't be able to add on the stamp duty as it will increase the LTV too much?

If we applied for a 90% mortgage (which we could do at a stretch if we were able to add the stamp duty to the mortgage) that would increase the LTV too so we'd miss out on the better 90% mortgage deals, is that correct? So it would be pointless to do?

Thoughts welcome!

Unless I'm completely wrong, you can't add stamp duty to your mortgage.

You can, however, use of the money you have as a deposit to pay the stamp duty and then borrow a larger mortgage. Of course, as you've said, the LTV will increase because you're borrowing more in comparison to the purchase price.

I assumed you couldn't either, but I've read people on other forums mention it in passing, but after a bit of searching could find no further details as to the mechanics or criteria surrounding it!

We're going to get a (hopefully decent!) broker shortly anyway and will of course ask them, but was just curious in the meantime

You can't add stamp duty to the mortgage. We bought last year via a broker and he said no lender would allow this.

We will hopefully be moving house soon, and will need to take our stamp duty out of the equity we release by selling our current house, thereby adding onto our next mortgage.

I spoke to HSBC on Monday and they said this was Ok. Not sure what happens if you are a FEW, although you can obviously take it out of your deposit as you and a pp said.

Thanks both