Can I include Stamp Duty in mortgage

Hoggy1983x

Hi all,

I'm looking to buy a house with a 15% deposit.

However, I'd have to pay £8.25k in stamp duty which I cannot afford up front.

Can I add this to my mortgage and put 15% of my stamp duty to my deposit?

Any advice or options here greatly appreciated

Thanks,

dimbo61

No if you are getting a mortgage product with a ltv of 85% you cannot borrow the extra money needed to pay the stamp duty.
Your LTV would be over 85%

poormaria

No you can not add it on the mortgage. You would effectively be going for a lower deposit so will likely take you to your 90% deals, which in my opinion aren't at all bad if you can get accepted on them
Virgin are currently doing a deal that they'll give you some towards stamp duty but it's only through some brokers as far as I know

kingstreet

Reduce your deposit.

Use the money to pay your SDLT.

Debtslayer

No you can't add stamp duty to mortgage
You need to either:
A) put 90% deposit down so you have money for the stamp duty
Find a cheaper property where stamp duty isn't so expensive
If you can't afford the stamp duty then you can't afford to buy the house.

deegsy

When i bought my first property i offered the asking price+stamp duty on top. I then said this offer is subject to the vendor paying my stamp duty on completion. So effectly i added it to my mortgage and it went through fine. Hope this helps.

Hoggy1983x

To clarify further...it's a new build flat whereby I cannot go lower than 85% LTV. It is £365k. With SD it's £373.25k. My question is can I possibly proceed with a deposit of 15% of £373.25k? (£56k).

I've looked at the money saving site stamp duty section which states people do this at times. I was hoping to see if anyone has done this and which lenders?

I appreciate all answers so far so thanks

csgohan4

Seems you either have to save up or consider borrowing from friends. You cannot defer stamp duty.

deegsy

use an Interest free credit card then pay it off that way?

csgohan4

deegsy wrote: »

use an Interest free credit card then pay it off that way?

It would be classed as a cash advance and incur huge fees.

Caz3121

Hoggy1983x wrote: »

To clarify further...it's a new build flat whereby I cannot go lower than 85% LTV. It is £365k. With SD it's £373.25k. My question is can I possibly proceed with a deposit of 15% of £373.25k? (£56k).

If your mortgage is based on 85% LTV that will be 85% of the valuation of the property or the purchase price - whichever is the lower, any difference and extras need to be in addition to deposit. Assuming the valuation/purchase price is agreed at £365k, your mortgage max will be £310k so you will need £55k as your 15% deposit plus stamp duty, fees etc on top
Others may have been able to increase the LTV to use some of the deposit for the SD...eg moving to a 90% mortgage would reduce your deposit required from £55k to £36.5k so you would have money to use for the stamp duty but that does not seem to be an option for you due to it being new build