Ways to Keep your Stamp Duty at a Minimum

Property Tax Written on NotebookMany first-time home buyers in the U.K. stress out about getting their first properties due to the usually hefty amount charged called stamp duty. This goes on top of the deposit that you are required to pay to be able to get a mortgage.

There is a way for you to know how much you would have to pay — by checking a stamp duty on property calculator. If you want to know how to lower your stamp duty when buying your first property, below are a few tips.

Build a new home

If you already have purchased land, go ahead and consider building a new home. A lot of homebuilders in the U.K. have a couple of incentives that they usually offer to new homeowners.

Most of them will offer to pay for your stamp duty upon the completion of your new home.

Negotiate with the seller

Upon buying a property, try asking the seller whether they are willing to shoulder the stamp duty or not. If they say no, you may still negotiate. You could agree on some terms that would be best for the both of you. It would be best to discuss such matters right away rather than later.

Consider getting a cashback mortgage

Some lenders out there offer cashback mortgages, which means that you will receive a cash lump sum from your lender once you complete the mortgage payment. You could use the lump sum for your stamp duty payment.

Remember that not all lenders will offer this option, so make sure to ask them beforehand and see which deal would be best for you.

Stamp duty is not all that bad when you know how to keep its costs at bay. Always do your research and be informed!

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