Skip to main content
ARE YOU A BUSINESS?

Post content has been hidden

To unblock this content, please click here

SJGemini
Beginner May 2008

Mortgage/LTV/stamp duty question

SJGemini, 20 August, 2009 at 11:04 Posted on Off Topic Posts 0 2
Saved
Reply

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 ·
    • Report
    • Hide content

    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

    • Reply
  • Emma80
    Beginner
    Emma80 ·
    • Report
    • Hide content

    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!

    • Reply
  • SJGemini
    Beginner May 2008
    SJGemini ·
    • Report
    • Hide content

    Yes, that's great, thank you both!

    • Reply

You voted for . Add a comment 👇

×

Related articles

35 Fun Questions to Ask Each Other on Your Honeymoon
Honeymoons 35 Fun Questions to Ask Each Other on Your Honeymoon Add some fun to your honeymoon with these questions - whether you want silly or...
11 Questions with...Marc Hornby of Caviar & Chips
Planning Essentials 11 Questions with...Marc Hornby of Caviar & Chips This month we ask Marc Hornby, CMO and co-founder of Caviar & Chips, about his...
34 Perfect Proposal Rings to Pop the Question With (Starting from Just £15!)
Wedding Fashion 34 Perfect Proposal Rings to Pop the Question With (Starting... Want to propose but choose the engagement ring together? These temporary...
Read more articles

General groups

Show more

Hitched article topics