Stamp duty causing homeowners to increase their mortgage

19/02/2007

Figures have stated that 25 per cent of homeowners have no choice but to increase their mortgage by a standard £3,760 to reassure the stamp duty.

Mform.co.uk found out that 66.6 per cent of homeowners over the three years just past had to pay tax, this is due to houses increasing price wise.

Chief executive of mform.co.uk, Eamonn Rice stated: "Stamp duty can be a nasty surprise for homebuyers and with the average house now costing upwards of £170,000 it is difficult for people to escape.

"On the average house the stamp duty bill will be at least £1,700 to £2,000 but for more expensive homes the bill rises steeply.

He also stated: "With all the other costs associated with homebuying it is no surprise that people are using their mortgage to help pay their stamp duty bill. However putting the cost on your mortgage means you will be paying for stamp duty for a long time and the interest will mount up."

Houses, which are over £125,000, are levied at 1 per cent of stamp duty fees and this is increasing to a staggering 3 per cent at £250,000 and when a property is over the value of £500,000 then a 4 per cent stamp duty must be taken into consideration.

Figures have been totalled and mform.co.uk have said that borrowers have added an extra £10,000 to their mortgage deal just because of the stamp duty fee.

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