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This calculator can be used for residential property or non-residential property.

The calculator works out the Stamp Duty Land Tax (SDLT) you’ll have to pay for residential purchases (including lease premium) using new rules effective from 4 December 2014. It also shows how much SDLT is due under the previous rules and for non-residential purchases.

Stamp Duty Land Tax calculator

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

Bank of EnglandUK interest rates held at record low of 0.5% for another month

UK interest rates have been at 0.5% for five years. However, in June, Mr Carney said that interest rates could start to rise sooner than financial markets expected.

The size of the Bank’s economic stimulus programme – quantitative easing – was also unchanged at £375bn.

Debate over the timing of a rate rise has intensified, with Bank governor Mark Carney hinting recently that it could come by the end of this year.

In the minutes of the previous MPC meeting in July, all nine members of the committee voted to keep rates on hold.

Details of why the Bank’s Monetary Policy Committee (MPC) held rates will be published later this month.

The minutes for the latest MPC meeting are not due to be released until 20 August. If they reveal that some policymakers voted in favour of a rate rise it will be the first time the committee has been split since July 2011.

BOEThe Bank of England’s Monetary Policy Committee has once again voted to keep base rate at 0.5 per cent, the 61st month of record-low rates. The MPC also voted to keep its programme of quantitative easing at £375bn.

The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.5% on 5 March 2009. A programme of asset purchases financed by the issuance of central bank reserves was initiated on 5 March 2009. The previous change in the size of that programme was an increase of £50 billion to a total of £375 billion on 5 July 2012.

Bank of EnglandToday UK interest rates have been held at 0.5% for another month, the Bank of England has said.

The decision by the Bank’s Monetary Policy Committee comes five years after the record low level was first introduced.

It is the first rate decision since the bank amended its “forward guidance” policy that linked borrowing rates to unemployment figures.

Rates are unlikely to rise before the spring of 2015, analysts believe.

The Bank also kept its £375bn quantitative easing (QE) programme unchanged.

The half-decade of ultra-low interest rates has seen returns on savings hammered, while mortgage borrowers have reaped the benefits of lower repayments.

Help to BuyEquity loans taken out under the Help to Buy scheme since its inception have reached a total value of £600m, government figures have revealed.

Since the scheme launched in April 2013 14,823 equity loans have completed to the end of January, 89% of which were for first-time buyers.

Leeds topped the table as the council which completed the most purchases with 268.

The Help to Buy equity loan scheme can be used to purchase a new build property up to the value of £600,000 with a 20% equity loan up to a maximum of £120,000.

The government has set aside a pot of £3.5bn to service the equity loan scheme.

The availability of a government loan to purchase a new build home helped to drive up house building activity last year.

Planning permissions granted in 2013 reached their highest level since 2007 climbing to 174,471, a report from the House Builders Federation showed.

The report revealed the scheme was delivering around 2500 reservations a month.

But despite the upward trend, the 2013 total figure is still short of meeting the country’s annual housing demands.

The Office of National Statistics predicted that 232,000 households are projected to form each year.

Stewart Baseley, executive chairman of the HBF, said: “Help to Buy equity loan is increasing demand for new homes and the industry is increasing its output as a result.

House prices rising at fastest rate for four years

House prices rose by 0.6% in February, a 9.4% increase on the same month in 2013, according to the Nationwide Building Society.

The annual rate of growth is the fastest for almost four years.

It puts the average price of a UK home at £177,846, which is still almost 5% below the 2007 peak.

The Nationwide said sales and prices were being driven by record low interest rates, higher employment and the easier availability of mortgages.

The lender’s chief economist, Robert Gardner, acknowledged that prices could accelerate even faster in the coming months, as more people took the plunge to buy for the first time or move. But he denied a house price “bubble” was being created.

“If you look at prices relative to earnings then housing does look relatively expensive by historic standards,” Mr Gardner told BBC News.

“But if you look at how much it costs to service a typical mortgage, that suggests that housing isn’t overly expensive at this point… because interest rates are at such low levels.”

The Nationwide pointed out that prices were also being driven higher by a continued lack of new homes.

“Price growth is being supported by the fact that the supply of housing remains constrained, with housing completions still well below their pre-crisis levels,” said Mr Gardner.

He added that just 109,500 new homes were built in England in 2013, which was 38% below the level recorded in 2007, and about half the projected number of new households expected to form each year.

BarclaysBarclays to launch into Help to Buy 2 next Tuesday

The lender will offer two products including a three-year fix at 5.35% and a five-year equivalent at 5.49% from Tuesday 14 January.

Both products are fee-free and available up to 95% loan-to-value. A minimum loan size of 50,000 and maximum of £570,000 apply to both products.

The Help to Buy mortgages will be available through all channels, both direct and intermediary, and the products will be available on new build and existing properties. Only house purchase loans will be accepted by Barclays.

To find out more about Help to buy and for a personal illustration, please give one of our qualified advisers a call or email us via “Contact Us” page with your requirements.

 

untitledA million turn to payday loans to pay mortgage and rent

Nearly 1 million people in Britain have used a payday loan to pay their rent or mortgage as they face making ends meet difficult, a survey carried out for Shelter has revealed.

A survey of 4,000 adults found one-in-five rent or mortgage payers had borrowed money to cover their housing costs while 2% had turned to the high cost short-term payday loans to avoid defaulting on payments.

One-in-four people said they would feel too ashamed to ask for help if they couldn’t pay their rent or mortgage while 40% wouldn’t admit if they were struggling with their housing costs to family or friends.

Payday loans showing on your credit report can seriously reduce the risk of you being able to purchase a property or even if you are just remortgaging.

Before you go and apply for a payday loan, consider the consequences and give us a call on 01489 580020 or email us via “Contact Us” whereby one of our qualified mortgage advisers at parkgate can assess your financial needs and provide you with the right advice which could save you from having to rely on payday loans.

 

Mortgages
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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.