Homebuyers warned over stamp duty

Those thinking of taking out mortgages to buy a home have been advised to consider buying before the end of the year to avoid being hit by the change in stamp duty.

January 1st will see the price threshold at which the one per cent band of the tax is payable revert back from £175,000 to £125,000 and Abbey Mortgages has said people should move quickly.

Director of the lender Nici Audhlam-Gardiner remarked: “With the holiday coming to an end, anyone looking to buy a property worth more than £125,000 faces a sizeable tax bill if they fail to complete before December 31st.”

This could amount to £1,750 extra, she said, something those seeking mortgages may be keen to avoid.

Head of communications at L&C Mortgages David Hollingworth predicted a major increase in the number of property transactions taking place in the run-up to January as people seek to save money.

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