Stamp Duty on Mortgages

Generally, mortgages attract stamp duty at a rate of 0.5% plus the £50 registration fee.

Where a borrower is re-financing an existing loan a nominal rate of £50 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 payable is £50 plus 0.5% on the excess amount of the borrowing.  This type of arrangement does not attract the £50 registration fee.

It must be noted that the concessionary rate relating to a re-financing of an existing loan does not apply to commercial property. It does on some occasions and at the discretion of the Greffier, apply to dwelling accommodation owned by a company.

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 £150,000 then the stamp duty payable will be £25 plus £50 registration fee
• If the market value exceeds £150,000 but does not exceed £175,000 then the rate applicable will be 0.125% plus £50 registration fee
• If the market value exceeds £175,000 but does not exceed £200,000 then the rate applicable will be 0.25% plus £50 registration fee
• If the market value exceeds £200,000 but does not exceed £300,000 then the rate applicable will be 0.375% plus £50 registration fee