Featured - Account Types
What type of savings account do you need?Find out about the different types of savings accounts available to suit a variety of needs.
Savings
ISAs
Residential
Buy to let
Specialist mortgages
Featured - Debt and your credit score
How debt impacts your credit scoreA healthy credit score has its benefits, so make sure you manage your debt correctly.
Loans
Featured - Life Insurance
Life InsuranceFor peace of mind that your loved ones will be supported financially after you die, consider taking our life insurance. Find out more and compare policies.
Home & vehicle
Health & travel
Featured - High interest current accounts
Find current accounts offering in-credit interest rates up to 5.00% AER.
Current accounts
Featured - Purchase Cards
Best purchase credit cardsExplore the best cards with a 0% introductory period.
Credit cards
Credit repair
Calculators & guides
Business savings
Business products
Business insurance
How much can I give as a cash gift?
How much can I give as a cash gift?Will your loved one's gift be tax affected?
Categories
Featured guides
Popular news
Latest news - by category
Other money & finance news
Featured Star Ratings categories
Other Star Ratings categories
Featured - Account Types
What type of savings account do you need?Find out about the different types of savings accounts available to suit a variety of needs.
Savings
ISAs
Residential
Buy to let
Specialist mortgages
Featured - Debt and your credit score
How debt impacts your credit scoreA healthy credit score has its benefits, so make sure you manage your debt correctly.
Loans
Featured - Life Insurance
Life InsuranceFor peace of mind that your loved ones will be supported financially after you die, consider taking our life insurance. Find out more and compare policies.
Home & vehicle
Health & travel
Featured - High interest current accounts
Find current accounts offering in-credit interest rates up to 5.00% AER.
Current accounts
Featured - Purchase Cards
Best purchase credit cardsExplore the best cards with a 0% introductory period.
Credit cards
Credit repair
Calculators & guides
Business savings
Business products
Business insurance
How much can I give as a cash gift?
How much can I give as a cash gift?Will your loved one's gift be tax affected?
Categories
Featured guides
Popular news
Latest news - by category
Other money & finance news
Featured Star Ratings categories
Other Star Ratings categories
On Friday the Government’s lowering of the Stamp Duty threshold will end, resulting in homeowners having to pay the full Stamp Duty tax when purchasing a property. Here we look at how this will affect the cost of buying a home and the impact it will have on home movers and first-time buyers.
To help keep the property market moving, in July 2020 the Government announced a temporary cut on the Stamp Duty threshold, which meant that home buyers did not have to pay a Stamp Duty tax on properties valued up to £500,000, while a reduced Stamp Duty was payable on properties above this price.
The Stamp Duty holiday resulted in many homeowners savings thousands of pounds when buying a new home. However, house prices have increased to record highs during the past 12months which may have diminished any savings homeowners have made with the Stamp Duty reduction.
The ending of the Stamp Duty holiday means that property buyers will now have to pay the full tax when purchasing a new home. For those moving home this means that they will not have to pay any Stamp Duty on properties valued at £125,000 or less, on properties priced £125,001 to £250,000 a 2% tax will be added, a 3% Stamp Duty tax is added on properties priced between £250,001 and £925,000, those priced between £925,001 and £1,500,000 are charged 10% and properties over £1,500,000 are charged 12%. The Stamp Duty rate applies only to the part of the property price falling within that band, for example a property valued at £600,000 will not be charged Stamp Duty on the first £125,000, a 2% rate will be charged on the value between £125,001 and £250,000, 5% will then be charged on the value between £250,001 and £600,000.
First-time buyers, however, are exempt from paying Stamp Duty on properties valued up to £500,000. Meanwhile, a higher rate of Stamp Duty is payable on those purchasing second home and buy-to-let (BTL) properties.
Use our Stamp Duty calculator to find out exactly how much Stamp Duty you will pay when purchasing a home.
Mortgage rates have been falling over the past few months, with lenders now offering record low rates on remortgage and moving home deals. Although many factors can impact the mortgage rates lenders set, if they are concerned that the ending of the Stamp Duty will lead to a slowdown in the housing market this could result in them keeping rates low to attract new borrowers onto their books and to retain existing borrowers. Already there are signs that the number of house purchases are starting to fall. The Bank of England has released data showing that house purchases in July 2021 fell to their lowest point since July 2020.
As well as this, the ending of the Stamp Duty could see more first-time buyers entering the market, who often buy a property with a low deposit of 10%. Lenders looking to boost the number of borrowers on their books may want to attract first-time buyers, which could result in them cutting rates on their deals requiring a 10% deposit – 90% loan-to-value (LTV).
Visit our moving home and first-time buyer mortgage charts to compare and find the best mortgage deals. Alternatively, consider speaking to a mortgage broker who may be able to highlight deals not available directly to consumers, as well as the best options for your personal circumstances.
Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfactscompare.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.
This week's selection includes an increased two-year fixed ISA from Aldermore, and a five-year fixed rate mortgage from first direct.
Each week the Moneyfactscompare.co.uk content team round up the very best mortgage rates available in the UK. Compare and apply today.
More good news for borrowers as lowest rates continue to fall.
Mortgage approvals rose to their highest level in two years as house prices also record an increase, according to the latest figures from Nationwide BS.
Mortgage approvals rose to their highest level in two years as house prices also record an increase.
The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.
This week's selection includes an increased two-year fixed ISA from Aldermore, and a five-year fixed rate mortgage from first direct.
Each week the Moneyfactscompare.co.uk content team round up the very best mortgage rates available in the UK. Compare and apply today.
More good news for borrowers as lowest rates continue to fall.
Mortgage approvals rose to their highest level in two years as house prices also record an increase, according to the latest figures from Nationwide BS.
Mortgage approvals rose to their highest level in two years as house prices also record an increase.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.