Archive for mortgage

Stamp Duty and First time Buyers

With stamp duty not being charged for first time buyers on properties up to £250,000 what happens if 2 people are buying a home and one of them is not a  first time buyer and the other is? To avoid the stamp duty both must be first time buyers to qualify however there may be  a way to avoid paying the duty. With the help of your mortgage lender and a good solicitor it may be possible to buy the house in the name of the first time buyer if the applicants income is sufficient to cover the mortgage or if the lender allows a guarantor to make up for the shortfall in income.

Your solicitor will then be able to create  a declaration of trust that protects to the individual who is not on the deeds of the property so that their interest in the property is protected. There is a small additional cost for this legal work but the saving in stamp duty will be substantial.

Mortgage Approvals Down in February

The latest figures from the Bank of England show that mortgage transactions are down in February. The number of mortgage approvals for February dropped to 47,100. This is 2% lower than January and 19% down on December. With stamp duty being scrapped for first time buyers on properties costing under £250,000 there may be some improvement to come but funding for first time buyers may negate much of the hoped for impact by the Government.


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