From 1 April 2016 people purchasing additional properties such as buy to let properties and second homes will pay an extra 3% in stamp duty.
This means that tax bill on a buy-to-let property costing £250,000 will jump from £2,500 to £8,800.
This is the second major blow to buy-to-let investors this year, after the summer Budget in July reduced landlords’ ability to offset mortgage interest costs against rental income. That change will be phased in between 2017 and 2020 and is will dramatically reduce the yields available on investment properties and may even make some existing buy-to-lets unprofitable.
This may of course trigger a wave of landlords looking to offload their properties, which may in turn make more first time buyer properties available. Any increase in property supply stops prices from soaring.
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Your home may be repossessed if you do not keep up repayments on your mortgage.
There will be no fee for Mortgage Advice. There may be a fee for arranging a mortgage. The precise amount will depend upon your circumstances, but we estimate it to be between £399 and £599.
Mortgage Required Ltd, Finance House, 5 Bath Road, Maidenhead, SL6 4AQ is authorised and regulated by the Financial Conduct Authority reference 573718 at www.fca.org.uk.
The Financial Ombudsman Service is an agency for arbitrating on unresolved complaints between regulated firms and their clients. More detail can be found on their website: www.financial-ombudsman.org.uk
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