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SJGemini
Beginner May 2008

Mortgage/LTV/stamp duty question

SJGemini, 20 August, 2009 at 11:04 Posted on Off Topic Posts 0 2
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Ye Gods I'm confused.

I'm trying to work out how much of a mortgage we can afford.

When you are working out the LTV percentage, do you include Stamp Duty in the value of the house? Or is that just an added extra?

So if i'm looking at a house of £250k with 3% stamp duty = £257, 500, and I need a deposit of 25% to get the better mortgage deal, is that

25% of the value of the house ie £62.5k or

25% including stamp duty ie £64, 375?

And if it's just the value of the house itself, can you add the stamp duty on to the mortgage?

Deep apologies if I appear thick, but I probably am.... I hate housebuying/selling and especially our cr*p estate agent.

xxSJxx

2 replies

Latest activity by SJGemini, 20 August, 2009 at 11:52
  • S
    Beginner December 2007
    Sez ·
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    The stamp duty is separate to the mortgage. The stamp duty is paid to your solictor usually when you pay their fees after completion. Stamp duty is paid to the government I think and you cannot add to the mortgage.

    Sez

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  • Emma80
    Beginner
    Emma80 ·
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    The deposit is 25% of the value of the house, you'll need to pay stamp duty separately. So you'll need £62.5k house deposit, but also enough cash to cover paying the stamp duty, solicitors costs etc. You can't put stamp duty on the mortgage as far as I'm aware (though I guess in effect you would be doing so if paying stamp duty reduced the amount of deposit you had available and thus meant taking out a bigger mortgage).

    Hope that makes some sense!

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  • SJGemini
    Beginner May 2008
    SJGemini ·
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    Yes, that's great, thank you both!

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