Are you a first-time buyer wondering if you have missed the opportunity from the lower stamp duty rates?
Are you a first-time buyer wondering if you have missed the opportunity from the lower stamp duty rates? Unfortunately, time is running out and the 1st April 2025 is fast approaching…
How does the Stamp Duty Changes Affect First-Time Buyer’s?
At this current time, first-time buyers pay no Stamp Duty when purchasing a home valued up to £425,000. However, from Tuesday 1st April 2025, the Stamp Duty thresholds will be returning to pre-2022 levels, this means that the tax-free threshold for first-time buyers will drop to £300,000. This change means that when buying a home worth £425,000, it will cost first-time buyers £6,250 in Stamp Duty.
Additionally, the ‘First-Time Buyer’s Relief’, which allows buyers to pay a reduced rate of Stamp Duty, is also changing. Currently, the relief applies to properties up to £625,00 but from April this will be reduced back to the pre-2022 level of £500,00. As a result of this change, this will mean that a first-time buyer purchasing a home valued at £625,000 will increase from £10,000 to £21,250. An increase of £11,250.
Is There Still Time to Complete Before the Increase?
If you are currently in the process of owning your first home, you may still have time to complete before the rates increase. However, it is important to note that the average time it takes to complete a house purchase can be between 12 to 16 weeks and sometimes can take longer.
First-time buyers currently in the process of completing on their house purchase, should consider making plans to pay Stamp Duty at the higher amount if their completion is later than the 31st March 2025.
How Can We Help First-Time Buyers?
Buying your first home can feel overwhelming, especially with changes like these on the horizon. As expert Mortgage Brokers, we are here to help guide you through the process, ensuring that you get the best mortgage deal possible for your needs and circumstances, whilst helping you navigate these Stamp Duty changes with confidence.
Whether you are looking for advice on securing a mortgage or would like to understand your options available, we’re here to help you every step of the way!
Get in touch today and let’s make your dream of homeownership a reality!
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