Discussion
So if you buy a new house off a builder for £300k and they include stamp duty, are you actually better off paying £290k for the house and paying the £10k stamp duty yourself?
That way you only need £29k deposit and to borrow £261.
The builders way means that you need £30k deposit and borrow £270.
Essentially the stamp duty is being added to the mortgage and is going to cost you a lot more than £10k over the lifetime of the mortgage.
That way you only need £29k deposit and to borrow £261.
The builders way means that you need £30k deposit and borrow £270.
Essentially the stamp duty is being added to the mortgage and is going to cost you a lot more than £10k over the lifetime of the mortgage.
From the buildrs point of view it goes down as a sale on LR at £300k, and they can probably count the stamp duty as some sort of taxable payment that allows them to set it off (an accountant would have to answer that one0
However from your point of view, yes, you're correct buying at the lower amount, if you have a spare £10k for SDLT, makes sense.
BTW have you checked that you can get a 90% mortgage on the property you're looking at. Some lenders are a bit wary of new build at the moment.
However from your point of view, yes, you're correct buying at the lower amount, if you have a spare £10k for SDLT, makes sense.
BTW have you checked that you can get a 90% mortgage on the property you're looking at. Some lenders are a bit wary of new build at the moment.
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