Second Home Mortgages

In the United Kingdom, stamp duty land tax (SDLT) is a tax that is levied on the purchase of second homes. The amount of SDLT that is payable on a second home will depend on the purchase price of the property and whether the purchaser is a UK resident or non-UK resident.

As of March 2023, the current stamp duty rates for second homes in England, Wales and Northern Ireland are:

• Up to £250,000 - 3% of the purchase price
• £250,001 to £925,000 - 8% of the amount above £250,000
• £925,001 to £1.5 million - 13% of the amount above £925,000
• Over £1.5 million - 15% of the amount above £1.5 million

For example, if you were to purchase a second home for £500,000, you would pay SDLT of:

• 3% on the first £250,000 = £7,500
• 8% on the remaining £250,000 = £20,000
• Total SDLT payable = £27,500

It's worth noting that these rates can change over time, so it's always a good idea to check the current rates on the UK government website or speak to a qualified tax professional for advice.

If you're interested in a second home mortgage, contact us today to find out how we can help you achieve your goal. Our expert team are here to answer your questions and provide you with the support you need to make an informed decision.