Generally, mortgages attract stamp duty or Land Transaction Tax ("LTT") at a rate of 0.5% plus the £60 registration fee.
Where a borrower is re-financing an existing loan a nominal rate of £60 is payable provided the new amount borrowed does not exceed the unpaid amount on the existing loan. Where the amount of borrowing specified in the new borrowing document is greater than the unpaid amount, the stamp duty or LTT payable is £60 plus 0.5% on the excess amount of the borrowing. This type of arrangement does not attract the £60 registration fee.
Click here for the Mortgages Stamp Duty Calculator.
Mortgages for First Time Buyers
First time buyers who satisfy the first time buyer criteria referred to above also qualify for concessionary rates in respect of a mortgage associated with that purchase. Essentially, if the market value of the subject property:
- Does not exceed £300,000 then the stamp duty or LTT payable will be nil plus £60 registration fee
- If the market value exceeds £300,000 but does not exceed £400,000 then the rate applicable will be 0.25% on such amount that exceeds £300,000 subject to a minimum of £25 plus £60 registration fee.