Stamp Duty on Remortgage?

gallygirl

Have been looking for a remortgage deal for a BTL OH owns. Went via moneysupermarket & found some good deals, but price quoted included stamp duty.... was this assuming it was a purchase and not a remortgage (price quoted was 1% of purchase price.

:think: V confused.......

Ian_W

Hi ali,
It must have been, there is certainly NO stamp duty [or SDLT to give it it's Sunday name] on a remortgage - only where property is bought. If it was an estimate of legal fees rather than the mortgage quote itself I think you should always take those with a pinch of salt anyway, they're very much a rough guide.

nmiah786

Ian_W wrote:

Hi ali,
It must have been, there is certainly NO stamp duty [or SDLT to give it it's Sunday name] on a remortgage - only where property is bought. If it was an estimate of legal fees rather than the mortgage quote itself I think you should always take those with a pinch of salt anyway, they're very much a rough guide.

I second that! You only pay stamp duty when you make a purchase and not any subsequent time when you might want to remortgage. I think it might have been a guide of the legals fees involved assuming you were mortgaging for the first time. Rest assured you wont have to pay stamp duty when remortgaging!

AndrewSmith

IanW is, as always, absolutely right. There is absolutely NO STAMP DUTY to pay on a re-mortgage.

The only exception to this is if you are re-mortgageing a shared ownership property to purchase the remaining share, and that share is large enough to be liable to stamp duty. This is very uncommon though.

IanW is also right when he states that the estimation of the legal costs may not be completely accurate. Some lenders will pay the legals for you for example. There are companies out there charging flat inclusive fees for re-mortgage work approximately £399 all included.

You should look into the legal costs when researching your new mortgage. Too often today people are swayed by the "free legals" offer with some lenders only to find later that a much better rate was available to them with legal costs of a mere £399. A good broker will look at all these variables for you, as each situation will be diferent depending on your circumstances.

Hope this helps

Andy

gallygirl

Thanks all, seemed obvious but confused me......

Anyway, have decided to remortgage existing mortgage on own house - seems ok tax wise as long as we keep good records. Staying with existing co so won't cost too much hopefully.....