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Stamp Duty
coldstreamalways
Posts: 852 Forumite
To buy a house that I'm looking at, the stamp duty is about £8000, can I have this addded to my mortgage or do I have to pay it in cash?
I've looked everywhere but can't find the answer!!
I've looked everywhere but can't find the answer!!
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Comments
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Depends on your LTV with the 8k included and whether the mortgage total (incl 8k) is justified by your salary.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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The house is £289950 and I'll offer £285000 (hopefully it will be accepted!!), I have £37000 as a deposit, so on £293000, it will be LTV of about 87% (my maths isn't great so please let me know if that's wrong!!). I currently have a mortgage of £1100 a month and save £1100 so hopefully that will show I can afford repayments? I'm reading as much as I can about the whole process but still a novice so I really appreciate your experience.0
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I always think it is very difficult to value a house at that price range. With a stamp duty hike from 1% to 3%, on the whole amount at 250k, buyers are rightly reluctant to pay that sort of money. If the house is new to the market I would be inclined to wait til it falls to 260k then offer 250k.
That said, lenders LTV is based on the lower of the valuation or price paid. If you pay 285k then that is the max it is worth. 3% stamp duty on 285k is 8,550. Which means you will need a mortgage of 256.5k leaving the remainder for your deposit and stamp duty. (I trust you have money for legals and survey elsewhere.)
256.5k on a property valued at 285k is 90% so you are just at the edge of mortgage deals available to 90% LTV.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
I don't think it will drop again as it has already come down from 305k. My point is that if I have to pay the 8.5k in cash, I don't have enough for a min 10% deposit, can I add it to the mortgage? Legals I can manage in cash.0
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Offer £245k and increase up to £250k max. Stamp duty will only be £2,500 then.
Unless there's something exceptional about the house/location/circumstances, your offer seems a tad low in today's marketplace.
The fact it started at £305k you should ignore, that might have been overpriced by £20k all those months ago "in hope".0 -
coldstreamalways wrote: »I don't think it will drop again as it has already come down from 305k. My point is that if I have to pay the 8.5k in cash, I don't have enough for a min 10% deposit, can I add it to the mortgage? Legals I can manage in cash.
I thought I'd done the calculation to show you do have enough, just.
Otherwise the short answer is no, the max mortgage amount is the maximum they will give you.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Mortgages are usually assessed based on multiples of annual income (typically between 3x and 4x), not on what you think you can afford to repay.coldstreamalways wrote: »... I currently have a mortgage of £1100 a month and save £1100 so hopefully that will show I can afford repayments?....
What happens if interest rates rise to 15%+ (like they have done in the past)? Interest alone on £250k will be over £3000 pcm"Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100 -
You are seriously offering just £5k less that the asking price? Are you not aware what is happening around us? You should be looking to get that for £250k (which is still only 15% below asking) and no more.0
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coldstreamalways wrote: »To buy a house that I'm looking at, the stamp duty is about £8000, can I have this addded to my mortgage or do I have to pay it in cash?
I've looked everywhere but can't find the answer!!
you seem like another muppet with no idea about the current UK market.
your stretching yourself way beyond your means and i know this and i dont even knows your salary.
you barely have 10% deposit on a house of that value? which means well over 5% on SVR and even more on fixed. You also cant afford the Stamp duty, what about all the other mortgage fees? legal fees and what not?
my advice is you go see a down to earth IFA who can put you back in the REAL world.0 -
pandamonia - I see you've not been a member of MSE for very long, but if you wish to remain a member, could I suggest you re-familiarise yourself with this site's terms and conditions including the rules of posting on the forum, especially regarding the non-acceptance of abusive/offensive posts and nasty comments against other users.
"Pls be nice to all MoneySavers. There's no such thing as a stupid question, and even if you disagree courtesy helps""Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100
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