90% mortgage

Osborne scraps Stamp Duty slab structure in Autumn Statement

George Osborne will abolish the slab structure of the Stamp Duty Land Tax from midnight tonight and will replace it with new layers of tax rates which will lower the cost of buying a home for 98% of the country.

People buying homes will only pay the tax rate on the part of the property which falls within the band instead of paying it on the whole property price.

For homes up to £125,000 no stamp duty is payable then;

£125,001 to £250,000 – 2%

£250,001 to £925,000- 5%

£925,001 to £1,500,00- 10%

£1,500,001 and above 12%

Osborne referred to the old system as a ‘badly designed tax’ which placed the biggest burden on low and middle income families.

The new rules start tomorrow, on 4th December. People who have already exchanged contracts on their new home purchase but have yet to complete will get to choose whether they use the old or new stamp duty rules.

In Scotland the new rates will apply until 1 April 2015 when the Land and Buildings Transaction Tax replaces it.

The Chancellor said that for a home which cost £255,000 the Stamp Duty charge would be £4,500 lower than it would have been under the old system.

Osborne said the new approach to calculating the tax removed the need to revalue the UK’s stock of homes.

The old rates were;

£125,001 to £250,000 – 1%

£250,001 to £500,000 – 3%

£500,001 to £1m – 4%

£1,000,001 to £2m – 5%

Over £2m – 7%.

Osborne said just 2% of the population would lose out under the new structure and rates.

He said someone buying a home worth more than £5m would now pay £514,000 in Stamp Duty compared to £350,000 previously.

To read the government’s factsheet on the new Stamp Duty Land Tax “click here

Help to BuyHelp to Buy to Date

Prime Minister David Cameron has today announced that over 6,000 people have applied for a mortgage through the Help to Buy mortgage indemnity scheme in the three months since it was launched.

Figures published in November showed that 2,000 applications were made in the first month of the scheme and the number has more than trebled since then.

In total, almost £1bn in new homeowner loans will have been advanced once pending applications are approved. So far, nearly 750 homeowners have completed their purchases through Help to Buy 2.

The average Help to Buy customer is looking to purchase a home worth £160,000 and faces monthly repayments of around £900. The average household income of £45,000 means Help to Buy mortgages, on average, represent 23 per cent of borrowers’ gross income.

Cameron says: “Too many people have found themselves frozen out of the market in recent years as a result of the size of deposit required.

“That is why as part of our long-term economic plan we introduced the Help to Buy scheme, so hardworking people with sufficient earnings can get on, fulfill their aspirations and enjoy the security of owning their own home.

“In less than three months, the scheme has already helped thousands of people.”

If you would like to know more about the Help to Buy scheme, why not call one of our qualified mortgage advisers who would be more than happy to review your financial requirements. Please call us on 01489 580020 or email us via our “contact us” page.

Virgin Money is cutting rates across its residential mortgage range by up to 1.3 per cent from Tuesday 15th January. Offering some competitive rates at all loan to values.

Virgin money are offering a very respectable rate of 4.99 per cent at 90 per cent loan to value, reduced from 6.29 per cent. This should increase first time buyer interest. At the other end a two year fixed rate up to 60 per cent loan to value will become available from 2.49 per cent after it is cut by 0.15 per cent from 2.64 per cent. An equivalent tracker product is being cut by 0.20 per cent, from 2.75 per cent to 2.55 per cent.

If you are looking to purchase a property or remortgage the one you already hold, give us a call on 01489 580020 or complete the contact us form for a personal illustration, once we have assessed your financial situation and requirements.

Mortgages
life insurance
home insurance
equity release

We offer whole of market advice for all types of customers, whether you are a first time buyer, home mover or looking to purchase a buy to let property. Being independent we are able to offer impartial advice from the whole of the market to ensure you get the product that suits your financial needs.

Whether you are looking to protect your mortgage payments or your family, we provide independent advice for life insurance, critical illness cover and income protection from a wide range of providers.

Buildings Insurance is a requirement when you complete on a mortgage the cover is to provide security to the lender, the insurance covers the main structure of your home. It will cover you for subsidence, storm, flood, fire or smoke damage and cover the costs of rebuilding or repair.

Equity release is a way of releasing cash from your property, either through selling a percentage to the reversion company or taking a mortgage on it, while allowing you, the homeowner to continue living there as long as you wish.