UK households urged to get one form which will spare them £6,205 charge in April
UK households have been warned to get a mortgage pre-approval as soon as possible - as the risk of a £6,000 charge when Labour Party stamp duty changes kick in in April looms. Currently, first-time buyers pay zero stamp duty on properties up to £425,000.
But from April 1, this will be slashed to £300,000—meaning those purchasing a £425,000 home will suddenly face a £6,205 tax bill. Home movers aren’t safe either. The threshold for stamp duty is set to plummet from £250,000 to £125,000, leaving many facing an extra bill of up to £2,500.
Estate agents say those already house-hunting are racing against time to complete their purchases before the tax hike kicks in. Property expert Owen Rogers, product director at Zoopla’s conveyancing service, said: “The earlier you can confirm your mortgage offer, the quicker your conveyancing process will be. Many homebuyers make the mistake of starting the conveyancing process without a clear picture of their financial situation.
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"By obtaining a mortgage pre-approval or ensuring you have your funds available well in advance, you can avoid unnecessary delays. Work closely with your financial advisor or mortgage broker to get your paperwork in order early. Having everything lined up from the outset ensures that once the offer is made, you're ready to proceed without delays.
“One of the most significant factors that influences how quickly your conveyancing process progresses is who you choose to handle your transaction. An experienced conveyancer with a good track record of meeting deadlines can make all the difference.
“A good option could be to use Zoopla's free conveyancing service to select a vetted conveyancer. The service is proven to speed up the process, takes just 60 seconds to find a trusted UK conveyancer, and includes a free money-back guarantee.”
The number of homes for sale is also 10 per cent higher than a year ago.