Stamp Duty

[shaaaaating]

Hi

Can you add stamp duty to your mortgage loan?

In a word, no.

Super!

I believe you can - see this link for example: www.moneysavingexpert.com/mortgages/stamp-duty/#addtomortgage

We had to pay ours upfront when our solicitor asked for it.

Well yes, I suppose if you look at it that way everyone who takes a mortgage adds stamp duty to the loan. As they are using their funds to cover tax rather than reduce mortgage borrowing.

Thanks everyone.

We're just starting to look, saw our first viewing tonight and think we have got our hopes up. Oh well, another few months to wait 😖

shaaaaating it might be worth you getting quotes from solicitors for conveyancing etc just so you have an accurate idea of the sums needed to buy a new house. Getting the mortgage is only the start!!! I forget every time I move just how much you need for fees etc up front as it were.

We are going to speak with a broker today, hopefully get some more information. Thank you.

Do you get free legal in Scotland?

No idea!! I'm England - just to give you an idea, the fees to deal with the purchase of my new house comprise :

Anti money laundering check (per person) £5.40
Local Authority Search Fee £123.80
Drainage Search Fee £57
Environmental Search fee £61.20
Stamp Duty
Land Registry Fee £135.00 if done online £270 if not done online
Final Search Fee £8.06
Chancel Liablity Indemnity Insurance £15.79
TMNLIS case charge (no idea before you ask!!) £6.60
Bank Transfer Fee £40
Solicitors fees £875 plus VAT

I have to pay £275 up front to cover the costs of the searches.

Your broker won't give you this information as it comes from your solicitor and the search fees will be different for each County. Any reputable solicitor will give you the list of charges before you have to sign to work with them - the only thing which will change between firms is the solicitors fees.

Hope this helps! And that it applies to Scotland as well as England!! Apologies if not

Thank you Blobby 😆. I will get onto this so we at least know what fees we need.

Are you a first time buyer shaaaaating?

I'm a first time buyer but my husband isn't. He has a mortgage, tried to sell but has had no luck over the years.

To be fair, I have saved deposit for new house but realised we would need extra for the stamp duty. We viewed house yesterday and think we're just jumping the gun, if we moved in with parents we would only need to wait 3-4 months to get the stamp duty money sorted and more towards deposit.

I just need to have patience

If you are buying together then there will be additional Stamp Duty as he will own two properties. You can claim this back I understand if his property sells within 3 years?

@Lightsabre yeah, realised about the stamp duty. Thankfully the house we're hoping to buy is below £100,000, so stamp duty isn't that much. I wasn't sure if you could add to the loan or take additional borrowing from mortgage loan to cover the fees.

I have saved deposit but coming up short now as we were informed of stamp duty.

Don't think we will sell the property as we have had no joy in the past and I think it will be paid off in the next 10 years.

You need to add legal costs and survey costs as well.

Aw god, I have no idea what I'm dealing with. I always assumed you got Free Legal's and no fees etc with some lenders in Scotland.

Glad we are seeing someone tonight, no even started the process of a mortgage and my brains frazzled.

@Shaating make sure you ask your broker

1. what the arrangement fee is and if it can be added to the mortgage

1. is there an early repayment penalty and if so what is it. (I've just been caught out with this one
2. How much 'extra' can you pay off in a year - this may be useful!

The cheapest isn't always the best!

I have contacted solicitor for some advice and price quotes.

I think we are going to put house hunting on hold for few months until we get some more money, beans on toast for the foreseeable 🙈

No. SDLT is paid to HMRC via your solicitor. It has nothing to do with your mortgage or lender.

Mortgage arrangement fees - can be added onto the mortgage

Valuation - has to be paid upfront. Is sometimes free but this is more commonly when remortgaging.

Broker fees. Hmmm. Depends. I dont charge & just take the commission paid by the lender. These are now standard at .4% of the loan. Many brokers charge a fee for arranging the mortgage & some of these may rebate the commission they receive as a sweetener.

Early redemption penalties. 99% likely when you take out a fixed rate & paid if you redeem the mortgage before the initial period. You can usually move the loan (know as porting) onto your new house if you move within the initial period. There are sometimes penalties on tracker deals but often not.

HTH.

Have you seen bored Johnson’s planned changes to stamp duty if he ge

Too early hit return

If he gets elected. It may help you

"Bored Johnson". Lol!!!