mortgages for the over 65s

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

Mortgages for the over 65’s

Over 65 and looking to remortgage or purchase a property. Is your current loan due to be repaid shortly and the back cannot extend the term?

You may be looking to consolidate some debts or would just like to raise some additional funds to possibly buy a new car.

Most of the high street banks and building societies restrict the term you can have your mortgage over, therefore being over 65 this could therefore restrict you to a maximum term of 5 years and must be in a repayment basis. However there are lenders and products that will consider applicants over the age of 65 up to the age of 89.

Mortgages for the over 65’s are still based on affordability and if you are over the age of 70 years, then this will be based on your pension income only.

Loans are generally taken out on a Repayment basis (Capital & Interest), however the lender will consider loans for the over 65’s on an Interest Only basis as long as you have a plausible repayment plan or vehicle.

If you would like a personal quotation, please call one of our qualified advisers who can take the facts and then advise you accordingly.

Call us on 01489 580020 or complete the “Contact Us” form for mortgages for the over 65’s.

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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.