Can stamp duty be added to HTB 95% mortgage?

exoteric

Quick question: can stamp duty land tax be added to a Help to Buy 95% mortgage (on the mortgage guarantee scheme)? The reason I ask is that my wife and I are looking to buy in London which means that the stamp duty will 3% and almost be as much as the deposit, approximately £12,000.

Obviously this is going to take us a lot longer to save up, so can a lender add the stamp duty to the mortgage so that we will only need funds for the deposit and fees etc? If so, anyone recommend any lenders which will do this?

We have a very good income between us and good credit histories.

Senior_Paper_Monitor

Only one answer possible - no !

ACG

As above - no, it cant be done.

exoteric

ACG wrote: »

As above - no, it cant be done.

Thanks guys, suspected as much but wanted to check just in case.

exoteric

Hi all,

Just wanted to double-check that there are no lenders which allow this or circumstances that it would be allowed? The reason I'm asking is that a friend has said he's spoken to a broker who advised that he and his partner would be able to get a 95% mortgage with stamp duty added on. Not sure if it's a HTB mortgage they're looking at, but aren't all 95% mortgages HTB at the moment?

Thanks again!

chazzee

very unlikely as 95% LTV is just that, 95% of the value. Adding stamp duty in would increase the LTV and therefore would not be a 95% mortgage.

exoteric

chazzee wrote: »

very unlikely as 95% LTV is just that, 95% of the value. Adding stamp duty in would increase the LTV and therefore would not be a 95% mortgage.

Thanks chazzee. So perhaps my friend and his partner are looking at paying slightly more than a 5% deposit (therefore getting a lower LTV than 95%) and adding stamp duty to the mortgage that way - would that be possible?

If so, it seems to me that that might be the best way to do it if we don't quite have enough for a 5% deposit AND 3% stamp duty. We could pay 6% deposit, add the stamp duty to our mortgage which would raise the LTV but no higher than 95%, and everyone's happy..?

kingstreet

I don't know of a lender which will allow stamp duty to be added.

If under 95%, you'd just reduce your deposit to leave yourselves the cash to pay it, but at 95% there no way to do that.

somethingcorporate

chazzee wrote: »

very unlikely as 95% LTV is just that, 95% of the value. Adding stamp duty in would increase the LTV and therefore would not be a 95% mortgage.

They can and do add on mortgage fees that often take LTV thresholds above the product value.

StuC75

Would be very unusual for the lender to know about this and be happy about it.

Heck when I moved before the mortgage company checked through how much equity was put down from the original sale to ensure we weren't holding too much down in terms of auditing the financial figures involved..

Leon_W

There is one lender paying stamp duty at the moment. Max LTV is 95% but only on Help To Buy Mortgage Guarantee Scheme. New Build 80% LTV


There are conditions. It's only paid on properties between 125k and 250k , anything above that and you get nothing.


Is that what you're thinking of ?